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BERKELEY HEIGHTS, N.J. - CorMedix Inc. (NASDAQ:CRMD), a healthcare company that has delivered an impressive 203% return over the past year and maintains a "GREAT" financial health rating according to InvestingPro, announced Thursday it has entered into a definitive agreement to acquire privately-held Melinta Therapeutics LLC for $300 million, expanding its commercial portfolio with seven additional drug products.
Under the terms of the agreement, CorMedix will pay $260 million in cash and $40 million in equity to Melinta shareholders. With a strong current ratio of 4.21 and more cash than debt on its balance sheet, CorMedix appears well-positioned to execute this transaction. The deal includes a potential regulatory milestone payment of up to $25 million and royalties on net sales of MINOCIN and REZZAYO.
The acquisition will add six hospital-focused infectious disease products to CorMedix’s portfolio, including REZZAYO, MINOCIN, VABOMERE, KIMYRSA, ORBACTIV, and BAXDELA, along with the cardiovascular product TOPROL-XL.
"This acquisition is a transformational step in the evolution of CorMedix, providing an attractive revenue base of highly synergistic assets, as well as multiple opportunities to drive future growth," said Joseph Todisco, CEO of CorMedix.
Melinta’s portfolio generated $120 million in revenue in 2024 and is expected to deliver between $125 million and $135 million for fiscal year 2025. The combined company projects pro forma 2025 revenues of $305 million to $335 million. This aligns with CorMedix’s current growth trajectory, as InvestingPro analysts anticipate significant sales growth this year, with the company already generating $82.5 million in revenue over the last twelve months.
CorMedix expects the transaction to be near-term accretive to earnings per share with double-digit accretion anticipated in 2026. The company projects annual run-rate synergies of approximately $35 million to $45 million.
The cash portion of the deal will be funded through a combination of CorMedix’s existing cash and proceeds from a $150 million convertible debt financing with healthcare-focused institutional investors, including Deerfield Management Company.
The transaction, which has been approved by both companies’ boards of directors, is expected to close as early as September 1, 2025, subject to regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act.
This information is based on a press release statement from CorMedix Inc.
In other recent news, CorMedix Inc. has announced a public offering of 6.6 million shares of common stock, which is anticipated to generate approximately $85 million in gross proceeds. This offering has been priced, with the company granting underwriters a 30-day option to purchase an additional 15% of the offered shares. The offering is expected to close around June 30, 2025, pending customary closing conditions. Following this announcement, D. Boral Capital downgraded CorMedix’s stock rating from Buy to Hold. Conversely, H.C. Wainwright reiterated its Buy rating with a price target of $20.00, maintaining a positive outlook on the company. RBC Capital Markets is serving as the sole bookrunner for the offering. These developments are part of CorMedix’s recent strategic financial activities.
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