Mallinckrodt seeks image change with spin-off

7 December 2018

Shares of US drugmaker Mallinckrodt (NYSE: MNK) closed down 6.92% at $21.53 yesterday, after it announced plans to reshape its image

It plans to spin off a new company consisting of Mallinckrodt's specialty generics/active pharmaceutical ingredients (Specialty Generics) business and Amitiza (lubiprostone) to Mallinckrodt shareholders, subject to final board approval. Amitiza was acquired by Mallinckrodt last year along with it $1.2 billion purchase of Sucampo.

The separation is expected to create two independent, appropriately capitalized, publicly traded companies – one focused on innovative specialty pharmaceutical brands, the other concentrated primarily in niche specialty generic products and API manufacturing – each positioned to optimize future success as they pursue independent growth strategies.

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