Mallinckrodt to Acquire Questcor Pharmaceuticals
Mallinckrodt and Questcor Pharmaceuticals have entered into an agreement under which Mallinckrodt will acquire Questcor for approximately $5.6 billion. Subject to customary closing conditions, the transaction is currently expected to be completed in the third quarter of 2014.
“With Questcor, combined with our recently completed acquisition of Cadence Pharmaceuticals, the new Mallinckrodt will have an increasingly diversified specialty pharmaceuticals portfolio, which will include novel therapeutics for pain management, as well as central nervous system, renal, rheumatologic, and other autoimmune and inflammatory disorders," said Mark Trudeau, president and CEO of Mallinckrodt, in a press release.
Questcor's H.P. Acthar Gel (repository corticotropin injection) is expected to be a strong complement to Mallinckrodt's portfolio of specialty pharmaceutical brands. Acthar generated net sales for Questcor of $761.3 million in 2013. Acthar is an injectable drug approved by FDA for the treatment of 19 indications, many of which are associated with the treatment of autoimmune and inflammatory conditions.
Trudeau will lead the combined company, which is expected to increase its board of directors to twelve members with the addition of three directors from Questcor. Melvin D. Booth, the current chairman of Mallinckrodt's Board of Directors, will continue in that role after the transaction is completed. Upon closing, Questcor commercial operations will function as a separate business unit within Mallinckrodt's Specialty Pharmaceuticals segment reporting directly to Trudeau. Mallinckrodt expects to add Questcor executives to Mallinckrodt's leadership team; these individual appointments will be announced at a later date. Mallinckrodt will continue to be domiciled in Ireland with its main executive office in Dublin.