Mallinckrodt To Sell Hemostasis Products to Baxter
Mallinckrodt, a specialty pharmaceutical company, has agreed to sell certain hemostasis products to Baxter International for approximately $185 million, which includes an upfront payment of $153 million, inclusive of existing inventory and the remainder in potential future milestones.
Baxter will assume other expenses, including contingent liabilities associated with Mallinckrodt’s Preveleak, a surgical sealant. The product indicated for use in vascular reconstructions to achieve adjunctive hemostasis by mechanically sealing areas of leakage.
Recothrom (thrombin topical [recombinant]) and Preveleak, both products for use in the control of bleeding in the surgical suite, are included in the transaction, as well as the manufacturing operation for Preveleak.
In the year preceding September 29, 2017, Mallinckrodt’s net sales of hemostasis products were $56.2 million, substantially all of which related to Recothrom and Preveleak, according to the company.
Mallinckrodt says it will retain Raplixa (fibrin sealant (human)) for topical use, indicated as an adjunct to hemostasis for mild to moderate bleeding, and is evaluating strategic options for this product. Due to its shift in focus to the critical care, autoimmune, and rare-disease spaces, the company will discontinue marketing of the product upon close of the Baxter transaction. As a result, a write-off for this product will be reported for the fourth quarter 2017.
The closing of the transaction is subject to the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Mallinckrodt expects to complete the transaction in the first half of 2018.