By Lisa Kerner
Charlotte, N.C., Jan. 13 - Medicines Co. will acquire 100% of Targanta Therapeutics Corp.'s outstanding common stock in a $2.00-per-share cash tender offer valued at $42 million, it was announced on Tuesday.
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.
Both companies' boards of directors have approved the transaction.
Medicines, a Parsippany, N.J.-based pharmaceutical company, said it will follow the tender offer with a second-step merger in which any shares of Targanta not tendered into the offer will be converted into the right to receive $2.00 per share.
Targanta shareholders holding approximately 36% of the voting shares outstanding agreed to tender their shares in the offer, according to Medicines.
The tender offer is conditioned on a majority of outstanding Targanta shares being tendered in the offer. There is no financing condition.
"The addition of Targanta's oritavancin, a late stage product, will be another step toward execution of our strategic plan to become a global leader in critical care medicine," Medicines chairman and chief executive officer Clive Meanwell, M.D., said.
"We believe that oritavancin can become an important anti-infective for serious infections involving difficult-to-treat bacteria in difficult-to-treat hospitalized patients."
J.P. Morgan advised Medicines, and Leerink Swann advised Targanta.
Targanta is a Cambridge, Mass.-based biopharmaceutical company.
| Acquirer: | Medicines Co.
|
| Target: | Targanta Therapeutics Corp.
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| Announcement date: | Jan. 13
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| Transaction total: | $42 million
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| Price per share: | $2.00
|
| Expected closing: | Upon approvals
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| Stock price for target: | Nasdaq: TARG: $1.16 on Jan. 12
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