Targanta Therapeutics fetches $42m

Cambridge biotech Targanta Therapeutics Corp. is being bought for about $42 million by Medicines Co., a New Jersey drug company.

The sale comes after Targanta's lead drug candidate failed to win recommendation from a federal advisory panel in November and the stock price plunged.

The drug, oritavancin, is an antibiotic intended to treat complex skin infections, but panelists said it has not yet been proven safe and effective. Last month, the company said it was laying off 86 employees, about 75 percent of its workforce.

Still, Medicines Co. is optimistic oritavancin will eventually win Food and Drug Administration approval.

Medicines Co. also said Targanta shareholders may be entitled to receive additional cash payments if certain milestones for oritavancin are met.