Mallinckrodt, a specialty biopharmaceutical company, has agreed to acquire Ikaria, Inc. a privately held critical care company, for $2.3 billion. Subject to customary closing conditions, the parties expect the transaction to be completed early in the second calendar quarter of 2015.

Ikaria, Inc. is a global critical care company focused on development and commercialization of therapies and delivery systems to address the needs of critically ill infants in hospital neonatal intensive care unit (NICU) settings. Ikaria’s lead product is INOmax (inhaled nitric oxide), a vasodilator which, in conjunction with ventilatory support and other appropriate agents, is indicated for treating term and near-term neonates with hypoxic respiratory failure associated with clinical or echocardiographic evidence of pulmonary hypertension, where it improves oxygenation and reduces the need for extracorporeal membrane oxygenation.

With the acquisition, Mallinckrodt is seeking to strengthen its footprint in hospitals, extending its presence from its current base of diagnostic radiology and multimodal pain management in surgical specialties to include critical care respiratory therapies in neonatal intensive care units. The deal also builds potential diversity in Mallinckrodt’s nephrology rare disease pipeline with terlipressin (for injection), a portfolio asset being investigated for treating Hepato-Renal Syndrome Type 1 (HRS-1), a rare life-threatening condition with no currently approved therapy in the US. Terlipressin is approved for use and recognized as the standard-of-care treatment for HRS 1 in countries outside the US, including several in Europe.

Source: Mallinckrodt