CorMedix Expands Hospital-Focused Portfolio with Melinta Therapeutics Acquisition

CorMedix Inc. (CRMD) has acquired Melinta Therapeutics to expand its hospital-focused portfolio. The combined company is projected to generate $305-$335 million in 2025 revenue, with annual synergies of $35-$45 million, and is expected to be accretive to earnings with double-digit EPS growth in 2026. This acquisition will diversify CRMD's portfolio, expand its acute hospital care presence, and enhance R&D and commercial capabilities.

CorMedix Inc. (CRMD) has recently announced the acquisition of Melinta Therapeutics, a private, profitable biotech company, to expand its hospital-focused portfolio. The combined company is projected to generate $305-$335 million in 2025 revenue, with annual synergies of $35-$45 million. The acquisition is expected to be accretive to earnings with double-digit EPS growth in 2026 [1].

The acquisition of Melinta will diversify CorMedix's portfolio, expand its acute hospital care presence, and enhance R&D and commercial capabilities. Melinta generated $120 million in sales from its six therapies on the market last year, contributing approximately $40 million to CorMedix's sales this year after the deal closes in September [2].

CorMedix has funded the acquisition partly through debt, raising $150 million in convertible notes with an interest rate of just 4%. The notes are convertible to 11,137,725 shares at a price of roughly $13.47 per share, which is close to the share price at the time of the deal [2].

The acquisition aligns with CorMedix's strategic goal of expanding its commercial reach beyond dialysis operators. This move is particularly useful if CorMedix expands the label of DefenCath to include central venous catheter applications beyond dialysis. The acquisition is also EPS accretive due to the funding structure [2].

CorMedix's recent achievements, including the swift pivot into profitability with DefenCath, demonstrate the value that its innovative products bring to the healthcare system. However, the company must navigate potential risks, such as customer concentration and competition from other biotech companies developing similar therapies [2].

References:
[1] https://www.marketscreener.com/news/certain-convertible-preferred-stock-of-cormedix-inc-are-subject-to-a-lock-up-agreement-ending-on-25-ce7c50dbdf81f122
[2] https://seekingalpha.com/article/4816662-cormedix-the-undervalued-breakthrough