Feb 11 Specialty pharmaceuticals company
Mallinckrodt Plc said it would buy pain drug maker
Cadence Pharmaceuticals Inc for about $1.3 billion to
expand in the hospital market, where Cadence's products are
The deal will add Cadence's Ofirmev - an intravenous
acetaminophen formulation for use in pain and fever - to
Mallinckrodt's portfolio of pain products.
The drug, which was approved in November 2010, is expected
to have generated sales of $110.5 million in 2013.
Ofirmev, used in more than 2,350 U.S. hospitals, has been
used to treat an estimated 6-7 million patients since its launch
in January 2011, the two companies said in a statement.
Mallinckrodt said on Tuesday it would pay $14 in cash per
Cadence share, representing a premium of about 27 percent to
Cadence's Monday close.
Cadence shares were trading slightly above the offer price
at $14.03 before the bell, while Mallinckrodt was up 8 percent.
"Ofirmev's growth is driven by an expanding base of
physicians who are prescribing the product for an increasing
number of surgical patients," Mallinckrodt CEO Mark Trudeau said
in a statement.
"The product will be an outstanding addition to the brands
component of Mallinckrodt's specialty pharmaceutical segment."
Dublin-based Mallinckrodt, spun off from Covidien Plc
last July, makes drugs for pain management, cerebral or
spinal spasticity, inflammatory diseases and depression. It also
makes generic drugs and active pharmaceutical ingredients.
Mallinckrodt said it received debt financing commitments
from affiliates of Deutsche Bank Securities. The commitments,
along with cash on hand, are expected to fund the deal, it said.
Mallinckrodt was advised by Deutsche Bank Securities and its
legal advisers were Wachtell, Lipton, Rosen & Katz in the United
States and Arthur Cox in Ireland.
San Diego, California-based Cadence was advised by Lazard
and Centerview Partners, and its legal advisor was Latham &