San Diego-based Cadence Pharmaceuticals Inc. (Nasdaq: CADX), a biopharmaceutical company focused on acquiring, in-licensing, developing and commercializing proprietary products principally for use in the hospital setting, has entered into an agreement to terminate its exclusive option to acquire privately-held Incline Therapeutics Inc.
Under the waiver, consent and option termination agreement signed by Cadence and Incline, upon the closing of the proposed acquisition of Incline by The Medicines Co. (Nasdaq: MDCO), Cadence would receive a payment of approximately $13 million to buy out Cadence's interest in, and terminate Cadence's rights with respect to, the option agreement.
Additionally, Cadence would receive approximately $1.5 million related to the purchase by The Medicines Company of the shares of Incline common stock held by Cadence, subject to adjustment, and, potentially, a pro rata share of future milestone payments.
The acquisition of Incline by The Medicines Company is subject to the satisfaction or waiver of customary closing conditions, and is currently expected to close in January, 2013.
"The sale of our Incline option provides Cadence with non-dilutive capital and a solid return on our original investment," said Ted Schroeder, president and CEO of Cadence. "We're excited about the continued growth in sales of ofirmev, and believe that today's announcement provides us with further flexibility to focus on other drivers of near term revenue growth."