New Haven, Conn, June 29, 2017 (GLOBE NEWSWIRE) -- Melinta Therapeutics, a privately held company developing novel antibiotics to treat serious bacterial infections, has entered into a loan and securities financing agreement with Oberland Capital Management, LLC (Oberland Capital). Under the terms of the agreement, Melinta is eligible to receive up to $90M in the form of debt and equity. A significant portion was funded upon the approval of the NDAs for Baxdela™ (delafloxacin), and the company may also draw down capital in three additional tranches at Melinta’s option and after the achievement of certain conditions. Proceeds from this financing will be used primarily to fund commercialization activities for Baxdela, which was recently approved by the U.S. Food and Drug Administration for the treatment of ABSSSI (Acute Bacterial Skin and Skin Structure Infections).

“This largely non-dilutive financing gives us increased flexibility to fund our continuing commercialization efforts for Baxdela’s first approved indication, and to support indication-expanding studies in community-acquired bacterial pneumonia,” explained Paul Estrem, Melinta’s chief financial officer. “The agreement with Oberland is particularly attractive because it allows us to retire an earlier debt agreement, and provides for a cash-sparing repayment method that combines interest and low, single-digit revenue interest payments over a period of more than seven years. Oberland partnered well with Melinta to finalize the agreement and address our business needs, and we are enthusiastic about adding them to the team of investors supporting Melinta’s efforts.”

About Baxdela

Baxdela (delafloxacin) tablets and intravenous injection are approved for the treatment of ABSSSI (Acute Bacterial Skin and Skin Structure Infections). Baxdela was given priority review by the FDA due to its designation as a Qualified Infectious Disease Product (QIDP) under the Generating Antibiotic Incentives Now (GAIN) Act of 2012. The QIDP designation qualifies Baxdela for certain incentives related to the development of new antibiotics, including a five-year extension of any non-patent exclusivity period awarded to the drug.