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March 4, 2020

No auction, but Melinta sale plan moves forward

PHOTO | CONTRIBUTED Melinta's antibiotic Baxdela, which treats MRSA.
By Natalie Missakian

Melinta Therapeutics’ plan to sell the financially struggling antibiotics company to its principal creditor, a New York hedge fund, is moving forward.

Melinta canceled an auction scheduled for 9 a.m. Friday after receiving no competing bids for the company by Monday’s 4 p.m. deadline, according to U.S. bankruptcy court documents.

The move clears the way for the New Haven-born drug company to move ahead with a restructuring agreement it negotiated with health-care hedge fund Deerfield Management. Melinta included the plan as part of its filing for Chapter 11 bankruptcy protection in December.

Under the agreement, Melinta plans to exchange $140 million in debt for 100 percent of equity in the company. A confirmation hearing is set for April 2 at 10 a.m.

Melinta, which is now headquartered in Morristown, N.J., has continued operations during the bankruptcy. Company officials have said the new ownership would provide the company with the financial resources to ensure “potentially life-saving antibiotics continue to get to patients in need.” 

Contact Natalie Missakian at news@newhavenbiz.com

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