Amidst falling sales, Medicines Co. reportedly mulling sale
- Medicines Co. is potentially pursuing a sale, according to a report from Bloomberg. The news outlet cited sources familiar with the discussion and emphasized no final decision had been made.
- Shares moved up on the news, but moderated as trading progress on Wednesday.
- The New Jersey-based company has had a rough year after its blood thinner Angiomax went off patent.
This news comes as Medicines Co.'s sales have slumped considerably. In the first nine months of 2015, sales of Angiomax totaled about $213 million, compared to $470 million over the same period in 2014.
The company recorded a net loss of roughly $32 million in 2014, but that figure has ballooned to $147 million just through the first nine months of 2015.
Medicines Co. recently announced its first-in-class PCSK9 inhibitor has advanced to a Phase 2 trial. This drug, known as ALN-PCSsc, has a different mode of action than other anti-PCSK9 drugs. Rather than using monoclonal antibodies to bind to PCSK9 in the blood, ALN-PCSsc works to turn off PCSK9 synthesis.
Additionally, the drugmaker has an experimental antibiotic, Carbavance, progressing through phase 3 studies, according to its website.
In December 2015, Mallinckrodt acquired three hemostasis products from Medicines Co. for $175 million upfront and $235 million in milestone payments. The deal was expected to close in Q1 2016, giving Medicines Co. some much-needed cash.
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