PARSIPPANY, N.J. (AP) -- Medicines Co. has acquired a privately held drugmaker that has developed several potential treatments for serious infections in a deal that could be worth more than $400 million.
The Parsippany, N.J., company said Wednesday it paid Rempex Pharmaceuticals equity holders $140 million upfront and could pay an additional $334 million based on development, regulatory and commercial milestones.
The boards of directors of both companies have approved the deal.
Rempex, which is based in San Diego, has developed several potential treatments for forms of drug-resistant bacteria. They include Carbavance, an intravenous treatment for hospitalized patients with serious infections.
Medicines Co. focuses on developing treatments for cardiovascular and surgical care as well as serious infectious diseases. Its main product is the anti-clotting drug Angiomax.
In August, the company said it completed its purchase of ProFibrix BV after a bleeding-control drug that ProFibrix is developing met its goals in a late-stage clinical trial. Medicines Co. made a $10 million upfront payment in that deal and then paid $90 million at closing. It could pay another $140 million based on regulatory development and sales milestones.
Shares of Medicines Co. closed at $36.55 on Tuesday and have climbed 52% so far this year.
The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.