Melinta Therapeutics stock climbs after it highlights positive 4Q sales momentum

Melinta Therapeutics Inc (NASDAQ:MLNT) stock climbed Tuesday after it provided an update on its strategic repositioning initiatives, cost savings outlook, as well as new management appointments.

The New Haven, Connecticut, pharma company said Melinta anticipates that it will report net product sales of approximately $14 million for the fourth quarter and $46 million for the year ended December 31, 2018.

Melinta Therapeutics climbed 6.6% to $1.51.

READ: Melinta Therapeutics Inc. shares plunge after US$75mln stock offering

Melinta’s bestselling product is the FDA-approved antibiotic Baxdela (delafloxacin) which is used for treating acute bacterial skin infections. It is also seeing sales momentum for its Vabomere and Orbactiv antibiotics.

The company said it would execute on its “strategic initiatives aimed at repositioning the business” to drive profitable growth and value creation.

Melinta’s interim CEO and director, John Johnson has agreed to become the company’s permanent CEO. Separately, Timothy Simon became the chief commercial officer, while Jennifer Sanfilippo was promoted to general counsel.

“We are pleased with the significant progress we have made on a number of our strategic, operational and financial initiatives. Today, we are seeing positive momentum on product sales and our cost reduction efforts, with the potential to strengthen our balance sheet and extend our cash runway, subject to the closing of the convertible loan facility negotiated with Vatera,” said Johnson in a statement.  

In December 2018, Melinta entered into a $135 million convertible loan facility with Vatera Healthcare Partners LLC and Vatera Investment Partners LLC.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive 

Story by ProactiveInvestors