Merger agreement between Medicines, Targanta includes $5.49 million break-up fee

By Lisa Kerner

Charlotte, N.C., Jan. 14 - Targanta Therapeutics Corp. could pay up to $5.49 million plus expenses to Medicines Co. if the merger agreement between the two companies is terminated under certain circumstances.

Medicines could receive up to $2.5 million in reimbursed expenses related to the merger, it was reported in a form 8-K filed with the Securities and Exchange Commission.

As previously reported, Medicines agreed to acquire Targanta, a Cambridge, Mass.-based biopharmaceutical company, in a $2.00-per-share cash tender offer valued at $42 million.

Under the companies' merger agreement, Targanta shareholders may also be entitled to receive additional cash payments ranging from $0.50 to $2.35 per share upon the achievement of certain regulatory and commercial milestones, Medicines said.

Medicines is a Parsippany, N.J.-based pharmaceutical company.

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