Merck Has Been Paid The "Haircut" $20 Million Owed It By Cardiome

As of this afternoon, SEC filings made by Cardiome (under the foreign issuer rules -- in the form of an exhibit to an SEC Form 6-K) advise that Merck has received the settlement agreement $20 million in cash it is owed, in a haircutted deal. That $20 million satisfies, by agreement, the $50 million Cardiome would otherwise have owed Merck, under previous secured promissory notes, in the development relationship. [I should point out -- in passing -- that the amounts involved here would have to be an order of magnitude larger (i.e., closer to $300 million) to be even remotely considered material to New Merck.]

In addition, as part of the settlement agreement, Cardiome has agreed to "buy back" $3 million worth of vernakalant IV finished goods inventory and IV and oral active pharmaceutical ingredient Merck was holding, for Cardiome, under the prior relationship. From the SEC filing then:

. . . .As part of the settlement agreement, Cardiome shall purchase, in the amount of an additional $3 million, and take delivery of, vernakalant IV finished goods inventory and IV and oral active pharmaceutical ingredient (API). Cardiome expects the IV materials would support ongoing commercialization of BRINAVESS™ (vernakalant intravenous or IV). Vernakalant oral API is expected to be sufficient to support potential clinical trials that may be conducted in the foreseeable future. . . .

This item updates -- and likely closes out -- my December 2012 story on the unwinding of the Brinavess^TM (vernakalant) relationship between Merck and Cardiome. So it goes -- this is, net-net, a good way for Merck to exit, here.