World News: 13:31 GMT Wednesday 19th December 2018. [Melinta Therapeutics via Globe Newswire via SPi World News]
NEW HAVEN, Conn., Dec. 19, 2018 (GLOBE NEWSWIRE) -- Melinta Therapeutics, Inc. (NASDAQ: MLNT), a commercial-stage company developing and commercializing novel antibiotics to treat serious bacterial infections, today announced that John H. Johnson has agreed to become the permanent chief executive officer (CEO) of Melinta, subject to the terms of an employment contract and the close of the previously announced commitment for a credit facility of up to $135 million from Vatera Healthcare Partners LLC. Mr. Johnson is a director of Melinta and has served as interim CEO of the Company since October 22, 2018.
“John is a biopharmaceutical industry leader with a proven track record of growing businesses and unlocking value, and we are confident that he is the right person to lead Melinta into its next phase of growth and development,” said Kevin T. Ferro, chairman of Melinta Therapeutics. “During John’s brief tenure as interim CEO, he has moved decisively and with urgency to further advance the Company’s mission to provide life-saving therapeutic solutions that address the evolving global threat of bacterial infections and antibiotic resistance. On behalf of the Board, we look forward to continuing to benefit from John’s leadership and antibiotic therapeutic expertise as we continue working to reposition Melinta and increase value for our shareholders.”
“We will continue to take the necessary actions in order to lower costs across the organization, accelerate sales growth of our commercial products, Baxdela® (delafloxacin), Vabomere® (meropenem and vaborbactam), Orbactiv® (oritavancin), and Minocin® (minocycline) for Injection, while strengthening the Company’s financial position. The commitment for the new credit facility we announced today with Vatera is an important milestone that we believe will increase our financial flexibility and position us to build on the growing momentum in our business. I look forward to continuing to work closely with the Board, management team and all of our talented employees to deliver anti-infective solutions to patients while driving further growth and value creation for Melinta and its shareholders,” said John H. Johnson, interim CEO and director of Melinta.
Risks and uncertainties for Melinta include, but are not limited to, the fact that we have incurred significant operating losses since inception and will incur continued losses for the foreseeable future; our limited operating history; our need for future capital and risks related to our ability to obtain additional capital to fund future operations; risks related to the satisfaction of the closing conditions under the commitment letter, including receipt of stockholder approval; uncertainties of cash flows and inability to meet working capital needs as well as other milestone, royalty and payment obligations; the fact that our independent registered public accounting firm’s report on the Company’s 2016 and 2017 financial statements contains an explanatory paragraph that states that our recurring losses from operations and our need to obtain additional capital raises substantial doubt about our ability to continue as a going concern; our substantial indebtedness; risks related to our commercial launches of our products and our inexperience as a company in marketing drug products; the degree of market acceptance of our products among physicians, patients, health care payors and the medical community; the pricing we are able to achieve for our products; failure to obtain and sustain an adequate level of reimbursement for our products by third-party payors; inaccuracies in our estimates of the market for and commercialization potential of our products; failure to maintain optimal inventory levels to meet commercial demand for any of our products; risks that our competitors are able to develop and market products that are preferred over our products; our dependence upon third parties for the manufacture and supply of our marketed products; failure to achieve the benefits of our recently completed transactions with Cempra and The Medicines Company; failure to establish and maintain development and commercialization collaborations; uncertainty in the outcome or timing of clinical trials and/or receipt of regulatory approvals for our product candidates; undesirable side effects of our products; failure of third parties to conduct clinical trials in accordance with their contractual obligations; our ability to identify, develop, acquire or in-license products; difficulties in managing the growth of our company; the effects of recent comprehensive tax reform; risks related to failure to comply with extensive laws and regulations; product liability risks related to our products; failure to retain key personnel; inability to obtain, maintain and enforce patents and other intellectual property rights or the unexpected costs associated with such enforcement or litigation; risks relating to third party infringement of intellectual property rights; our ability to maintain effective internal control over financial reporting; unfavorable outcomes in any of the class action and shareholder derivative lawsuits currently pending against the Company; and the fact that a substantial number of shares of common stock may be sold into the public markets by one or more of our large shareholders in the near future. Many of these factors that will determine actual results are beyond Melinta’s ability to control or predict.
Other risks and uncertainties are more fully described in our Annual Report on Form 10-K for the year ended December 31, 2017, and in other filings that Melinta makes and will make with the SEC. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The statements made in this press release speak only as of the date stated herein, and subsequent events and developments may cause our expectations and beliefs to change. While we may elect to update these forward-looking statements publicly at some point in the future, we specifically disclaim any obligation to do so, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date after the date stated herein.
Globe Newswire: 13:31 GMT Wednesday 19th December 2018
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