Piramal to Acquire Mallinckrodt Intrathecal PortfolioBy
Mallinckrodt, a specialty pharmaceutical company has agreed to sell its intrathecal therapy business to Piramal Critical Care, the UK-based subsidiary of Piramal Enterprises that specializes in anesthesia, for approximately $203 million.
Mallinckrodt’s intrathecal therapy business markets products for treating spasticity, a muscle control disorder, via intrathecal (spinal column) drug delivery. With the acquisition, Piramal gains Gablofen (baclofen injection), a product approved by the US Food and Drug Administration in 2010 for managing severe spasticity of cerebral or spinal origin. Mallinckrodt also has a higher-concentration formulation of Gablofen in late-stage development. Both currently marketed intrathecal products and those in development are included in the transaction.
The approximately $203-million transaction will consist of $171 million of fixed consideration of which 10%, or $17 million, will be paid at closing, and an additional $154 million that will be paid on the first anniversary of the close date. The remaining total consideration of up to $32 million is contingent, based on the gross profit of the Gablofen products in 2018 and 2019. The transaction is subject to customary closing conditions, and Mallinckrodt expects to complete the transaction in the first quarter of 2017.