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Melinta to acquire Tetraphase
Posted on Friday, 05 June 2020 13:43
Melinta Therapeutics has agreed to acquire Thetraphase Pharmaceuticals, a business focused on commercialising its novel tetracycline Xerava to treat serious and life-threatening infections, for around USD 55.00 million.

Under the terms of the transaction, the buyer is offering USD 39.00 in cash, plus an additional USD 16.00 million in cash potentially payable under contingent value rights (CVR) to be issued in the deal.

The upfront consideration comprises USD 1.79 per item of stock held, USD 2.47 apiece underlying the common scrip warrants issued by the company in 2019 and USD 2.47 per share for the units issued in 2020.

Tetraphase shareholders will also be entitled to receive one non-tradeable CVR, the owner of which will have the chance to convert into cash up to an additional USD 16.00 million based on the achievement of sales of Xerava in the US of at least USD 20.00 million during 2021.

In addition, the CVR may be exchanged once the product has reached milestones such as sales of USD 35.00 million during any year ending on or before 31st December 2024 and USD 55.00 million during the same timeframe.

Shares in Tetraphase closed down 4.9 per cent to USD 2.13 yesterday, giving the group a market capitalisation of USD 15.47 million.

The deal has been approved by the group’s board and remains subject to shareholder agreement, among other conditions.

Completion is slated for the third quarter of 2020.

Yesterday, Tetraphase scrapped its previously announced merger with AcelRx Pharmaceuticals, which was announced in March and was said to be worth around USD 22.00 million.

The company has paid the business a termination fee of USD 1.79 million.

Jennifer Sanfilippo, interim chief executive at Melinta, said: “This transaction increases our world-class infectious disease portfolio and we are eager to build upon our synergies and leverage our collective expertise and scale to offer patients and providers battling serious bacterial infections with an additional potentially life-saving treatment option.”

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