BRIEF—Mallinckrodt to acquire Ocera Therapeutics

US specialty drugmaker Mallinckrodt has entered into an agreement to acquire Ocera Therapeutics, a clinical stage biopharmaceutical company focused on the development and commercialization of novel therapeutics for orphan and other serious liver diseases with high unmet medical need.

Ocera's developmental product OCR-002, an ammonia scavenger, is being studied for treatment of hepatic encephalopathy, a neuropsychiatric syndrome associated with hyperammonemia, a complication of acute or chronic liver disease.

A subsidiary of Mallinckrodt will commence a cash tender offer to purchase all of the outstanding shares of Ocera common stock for $1.52 per share (around $42 million), plus one Contingent Value Right to receive one or more payments in cash of up to $2.58 per share (up to about $75 million) based on the successful completion of certain development and sales milestones.

Ocera shares rocketed up 66.2% to $1.70 by late morning trading today.