The Medicines Company (NASDAQ:MDCO) announced a new strategic partnership with the Biomedical Advanced Research and Development Authority (BARDA), under which the company will receive funding for the development of new antibiotics targeting drug-resistant infections.
The partnership was inked under the terms of Other Transactional Authority (OTA) agreement, pursuant to which, the company will be funded with up to $132 million. The BARDA will provide initial funding of $32 million and up to an additional $100 million over approximately five years, if all options to extend the partnership are exercised by the BARDA.
The initial $32 million payment will support the phase IIIb trial on The Medicines Company’s lead pipeline candidate, Carbavance, for the treatment of gram-negative infections in hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia (HABP/VABP).
This portfolio-based partnership agreement is the first of its kind to be inked by the BARDA and a U.S.-based private company.
Carbavance has already been in a successful phase III trial program, which has allowed the company to plan an NDA submission in early 2017. Carbavance has been granted Fast Track status and designated as Qualified Infectious Disease Product (QIDP) in the U.S. for the treatment of complicated urinary tract infections.
In the U.S., more than 2 million people are affected by infections and 23,000 deaths occur annually due to drug-resistant infections. The latest agreement with the BARDA will enable The Medicines Company’s to expedite the development of novel therapies to combat the rising threat of drug-resistant infections.
Zacks Rank & Key Picks
The Medicines Company currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in health care sector include ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) , Anika Therapeutics Inc. (NASDAQ:ANIK) and Cambrex Corporation (NYSE:CBM) . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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