Medicines Co. to Acquire Targanta

Updated from 9:27 a.m. EST

Medicines Co.(MDCO Quote) said Tuesday that it would acquire antibiotic maker Targanta Therapeutics(TARG Quote) for a minimum price tag of $42 million.

The acquisition values Targanta at $2 a share, or a 72% premium to the company's closing stock price Monday of $1.16. Targanta shareholders are eligible to receive more cash from Medicines if certain regulatory and commercial milestones are met in the future, the company said.

Targanta's lead product is oritavancin, an antibiotic designed to treat serious hospital-based infections such as Methicillin-resistant Staphylococcus aureus, or MRSA. Targanta ran two phase III studies of oritavancin and sought the drug's approval from the Food and Drug Administration, but the FDA rejected the drug in December, asking Targanta to conduct another phase III study. ...