Medicines Co to sell cardiovascular assets worth up to $792 mn to Chiesi Farmaceutici

The Medicines Co today struck a deal to sell some of its non-core cardiovascular assets to Chiesi Farmaceutici SpA in a $792-million deal.

The sale comes a few months after Medicines Co agreed to sell its portfolio of hemostasis treatments to Mallinckrodt Plc for $410 million.

New Jersey-based Medicines Co will sell Cleviprex, Kengreal and the rights to Argatroban to Chiesi USA, Inc and its parent company, Chiesi Farmaceutici, for up to $792 million.

The total consideration consists of $260 million in cash payable at closing, up to $480 million in sales-based milestone payments, the assumption by Chiesi of up to $50 million in milestone payment obligations and approximately $2 million for product inventory.

The Medicines Co, which has a market cap of $2.5 billion, said that the deal is a major step in executing its previously-announced strategic plan and will enable it to sharpen strategic focus on its four potential blockbuster R&D products.

''The divestiture of these non-core cardiovascular assets is a transformative step in the execution of our strategy and will help propel The Medicines Company into the next stage of growth,'' said Clive Meanwell, CEO of The Medicines Co.

''The transaction will enable us to deploy significant additional capital to drive further development of our pipeline of potential blockbuster products, which we believe will significantly enhance the value proposition of those products and our ability to deliver the greatest long-term value for our patients, customers and shareholders,'' he added.

Founded in 1935, privately held Chiesi focuses in the respiratory, neonatology and special care therapeutic areas.

It generates more than €1.4 billion ($1.6 billion) in annual sales.