NEW HAVEN: Melinta Therapeutics is merging with Cempra, Inc. [Nasdaq: CEMP],of Chapel Hill, NC. a clinical-stage pharmaceutical company with a $161 milion market value, also focused on serious bacterial infections. The new company will be named Melinta, and current Melinta shareholders will receive 52% of the stock of the combined companies, the merger release said that a new CEO will be named, but did not indicate who.
The combined companies will have an expanded drug pipeline and the $175 million in cash on Cempra’s balance sheet and a $90 million debt and equity investment will be available to develop Melinta’s recently FDA approved drug.
Eugene Sun, M.D., Melinta’s CEO said, “we are excited to merge Melinta with Cempra, bringing together an unrivaled set of assets and opportunities.”
Melinta received FDA approval on June 19 of Baxdela (delafloxacin), a fluoroquinolone antibiotic for the treatment of acute bacterial skin and skin structure infections (ABSSSI).
Ten days later the company entered into an agreement for $90 million from Oberland Capital Management, LLC (Oberland Capital in the form of debt and equity. Melinta sold the development and marketing rights to Baxdela, for parts of South America, Europe and more than fifty countries. The company will be marketing the drug in the US.
Cempra’s principle development drug oral solithromycin which was developed in part with more than $50 million of government financing was rejected by the FDA last December which is requiring more safety data and a clinical trial of 9000 partiicpants. The company said it it pursuing “non-dilutive financing”, for the new trial.