Product Licensing Partnerships

Overview

We intend to continue building our critical care franchise of hospital products by selectively acquiring and developing early and late stage product candidates or products approved for marketing.

We seek product licensing deals with larger pharmaceutical companies in the process of refining their own product portfolios and from smaller companies seeking specialist development or commercial collaborations.

In evaluating product acquisition candidates, we will continue to seek products that have the potential to alleviate the growing pressures on U.S. hospitals to treat patients more efficiently.

In general, we look for:

1. an anticipated time from acquisition to commercialization of four years or less
   
   
2. existing clinical data which provides reasonable evidence of safety and efficacy
   
   
3. the potential to reduce a patient's hospital stay. In addition, we may acquire approved products that can be marketed in hospitals by our commercial organization.
   
   

In making our acquisition decisions, our approach is to:

• understand the market opportunity and potential cost savings for initially-targeted uses of the drug based on our knowledge of the critical care hospital markets and input from healthcare practitioners;
  
  
• assess the investment and development programs that will be necessary to achieve a marketable product profile in these initial uses;
  
  
• attempt to structure the design of our development programs to obtain critical information relating to the clinical and economic performance of the product early in the development process, so that we can make or adjust key development decisions; and
  
  
• assess the fit with our critical care franchise to enable commercial overlap and minimize the need for expansion of our commercial organization.
  
  

We believe that all of our products fit the profile set forth above. For each of the in-licensed products (Angiomax, Cleviprex, and cangrelor), we structured the license agreements to include an up-front payment, milestone payments upon marketing and regulatory achievements and royalties on eventual product sales. For products gained through acquisition (CU2010 and oritavancin), deal terms included an up-front payment and contingent payments based on achievement of relevant developmental, regulatory, and commercial milestones.

International Distribution Partnerships

The Medicines Company partners with several companies to market Angiomax outside of the United States. Angiomax is marketed in Europe under the trade name Angiox® (bivalirudin).