Mallinckrodt to sell BioVectra for $250 million
Heavily involved in US opioid crisis lawsuit settlements, UK-incorporated Mallinckrodt (NYSE: MNK) today announced it has entered into a definitive agreement to sell its wholly-owned subsidiary BioVectra to an affiliate of private equity firm HIG Capital.
The transaction price is around $250 million, including fixed consideration of $175 million, comprised of an upfront payment of $135 million and a long-term note for $40 million, and contingent payments of up to $75 million, enabling Mallinckrodt to capture future BioVectra growth potential.
News of the deal saw Mallinckrodt’s shares rise 12.6% to $2.37 in pre-market trading this morning. The stock has plummeted 77.9% over the past three months, amid concerns that federal opioid litigation has caused the company to consider filing for bankruptcy, which the drugmaker has downplayed.
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