Mallinckrodt to sell Intrathecal Therapy business

Shares of UK-headquartered specialty pharma firm Mallinckrodt (NYSE: MNK) dipped 1.1% to $46.54 this morning, despite announcing it would get around $203 million from the sale of its Intrathecal Therapy business, to a UK unit of Indian drugmaker Piramal Critical Care, an integral business unit of Piramal Enterprises (BSE: 500302) and a global leader in the field of anesthesia.

The approximately $203 million transaction will consist of $171 million of fixed consideration of which 10%, or $17 million, will be paid at closing, and an additional $154 million on the first anniversary of the close date. The remaining total consideration of up to $32 million is contingent, based on the gross profit of the Gablofen (baclofen injection products) in 2018 and 2019. The transaction is subject to customary closing conditions, and Mallinckrodt expects to complete the transaction in the first quarter of 2017.

The transaction adds to Mallinckrodt’s previously announced sale of its Nuclear Imaging business to IBA Molecular (IBAM) in a deal with $690 million that has just completed.