The Medicines Company’s (MDCO) subsidiary, Rempex Pharmaceuticals, will receive up to $90 million from the Biomedical Advanced Research and Development Authority (:BARDA) for the development of Carbavance.
The Medicines Company's Carbavance, combines a carbapenem antibiotic with a novel beta-lactamase inhibitor, which is being developed for the treatment of patients with multi-drug resistant (MDR) gram-negative infections.
Under the BARDA contract, costs related to development, manufacturing and regulatory activities for the FDA approval of Carbavance for serious gram-negative infections will be shared. BARDA is also planning studies for the treatment of certain gram-negative bioterrorism agents with The Medicines Company. The agreement covers one initial base period and seven option periods.
BARDA will initially provide $19.8 million to The Medicines Company. Subsequent payments (up to an additional $70 million) will be made over six option periods. The contract is expected to close on Jul 31, 2019 provided all the options are exercised.
We remind investors that in Dec 2013, The Medicines Company had acquired Rempex, which focuses on developing treatments for multi-drug resistant gram-negative bacteria infection. With this acquisition, The Medicines Co. added several anti-infective assets to its portfolio, the lead pipeline candidate being Carbavance. Last month, the candidate received a Qualified Infectious Disease Product (:QIDP) designation from the FDA.
Meanwhile, Rempex intends to commence phase III studies for Carbavance in 2014.
The Medicines Company carries a Zacks Rank #4 (Sell). Some better ranked stocks in the pharmaceutical sector include Actelion Ltd. (ALIOF), Alexion Pharmaceuticals, Inc. (ALXN) and Biogen Idec Inc. (BIIB). All these stocks carry a Zacks Rank #1 (Strong Buy).
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