If all goes well in phase 3 trials for ProFibrix's lead biologic, Fibrocaps -- a treatment to stop bleeding during surgery -- shareholders of the Netherlands-based drugmaker could receive a hefty payday from The Medicines Company (NASDAQ:MDCO), which says it's willing to buy out the company if it can expect to bring the therapy to market here at home as well as in Europe.
The Medicines Company said in a press release Tuesday that it will pay ProFibrix $10 million right now as an upfront option payment. If it is satisfied with the late-stage trial results that are expected to be released in the third quarter and decides to proceed, it will purchase all of ProFibrix's stock as well as make additional payments related to achieving U.S. and European regulatory approvals and sales milestones.
Alternatively, it has the option of walking away from the transaction.
The Medicines Company CEO Clive Meanwell said: "If approved by the regulatory authorities, we believe Fibrocaps will become a leading hemostatic product -- complementary to Recothrom Thrombin, topical (Recombinant). This would allow us to leverage our frontline activities in surgery centers at leading U.S. hospitals and potentially accelerate our entry into the European market."
Bank of America's Merrill Lynch served as financial advisor and WilmerHale served as legal advisor for the transaction for The Medicines Company. Barclays served as financial advisor and Dechert served as legal advisor for the transaction for ProFibrix.
ProFibrix is headquartered in Leiden, the Netherlands, with a subsidiary in Seattle.
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