The Medicines Co. has agreed to sell three of its noncore cardiovascular drugs to Chiesi Farmaceutici for up to $792 million, the companies announced Monday.
The Medicines Co. in Parsippany, N.J., is parting with the blood-pressure drug Clevipres injectable emulsion, Kengreal and rights to Argatroban for injection so it can focus on the development and rollout of other promising drugs, the company said. The proceeds also will strengthen the company's cash position.
The agreement, which is subject to U.S. antitrust investigation, is expected to be completed in the third quarter.
The Medicines Co. announced the deal while reporting that its first-quarter earnings had swung to a $92 million net loss, or $1.34 per share, compared with net income of $5 million, or 8 cents, in the prior year quarter.
“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,” said Dr. Clive Meanwell, CEO of the Medicines Co.
The deal calls for Chiesi USA and its parent company, Chiesi Farmaceutici, to pay $260 million in cash for the products, up to $480 million in sales-based milestone payments and $2 million in product inventory. Chiesi will assume up to $50 million in other milestone payment obligations.
The three-product divestiture by the Medicines Co. also is expected, along with some other restructuring, to reduce company operating and research and development expenses by $65 million to $80 million, Meanwell said.
Chiesi Farmaceutici is based in Parma, Italy, and lists itself among the top 50 pharmaceutical companies in the world with annual sales of about $1.6 billion.