Shares in biopharma firm CorMedix (CRMD) plunged over 11% today as it revealed it was buying peer Melinta Therapeutics for $300 million.
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Life Savers
CorMedix will buy biopharma group Melinta from healthcare-focused investment firm Deerfield Management in a cash-and-stock deal.
Melinta is a commercial-stage company providing innovative therapies for acute and life-threatening illnesses.
CorMedix said the deal, slated to close on September 1st, would add six marketed infectious-disease products to its offerings, including the antifungal drug Rezzayo, along with the cardiovascular drug Toprol-XL.
It also includes a potential milestone payment of up to $25 million related to Rezzayo, along with royalties on sales of Rezzayo and the antibiotic Minocin.
New York-based Deerfield, with more than $15 billion in assets under management at the end of 2024, bought Melinta in 2020.
Despite the share price reaction today, CRMD stock has had a strong 2025 to date as investors see the potential of a business dealing in niche areas of medical treatment.
Accelerate Innovation
“The combination of CorMedix and Melinta represents a compelling opportunity to create a specialty pharmaceutical leader with enhanced capabilities to serve patients,” said Joseph Todisco, Chief Executive Officer of CorMedix Inc. “Melinta’s proven commercial platform and portfolio perfectly complement our own, and once combined we will have the scale, resources, and expertise to accelerate innovation while creating significant value for our stakeholders.”
The announcement came as CorMedix reported strong Q2 2025 financial results, highlighted by $39.7 million in net revenue from sales of its lead kidney and blood health product DefenCath, compared to $0.8 million in the same period last year.
The company achieved net income of $19.8 million ($0.29 per share), a significant turnaround from a net loss of $14.2 million in Q2 2024.
The stock certainly seems to be heading in the right direction.
Is CRMD a Good Stock to Buy Now?
On TipRanks, CRMD has a Strong Buy consensus based on 5 Buy and 1 Hold ratings. Its highest price target is $20. CRMD stock’s consensus price target is $17.38 implying a 63.96% upside.
