Mallinckrodt Acquires Questcor for $5.6B

Irish drugmaker Mallinckrodt Pharmaceuticals said it will pay $5.6 billion in cash and stock for Questcor Pharmaceuticals, a biopharmaceutical company specializing in treatments for autoimmune and inflammatory disorders.

The deal will add Questcor’s Acthar Gel (repository corticotropin), an injectable approved by the FDA for 19 indications, and the ulcerative colitis treatment Synacthen (tetracosactide) to Mallinckrodt’s portfolio.

Under terms of the deal, shareholders of Questcor will be paid $30 in cash and 0.897 of a share of Mallinckrodt stock for each share of Questcor common stock owned.

Mark Trudeau, president and CEO of Mallinckrodt, says with the transaction, the resulting company will have a strong and diverse specialty pharmaceuticals portfolio, which will include novel therapeutics for pain management, as well as central nervous system, renal, rheumatologic and other autoimmune and inflammatory disorders.

After the sale Mallinckrodt’s board of directors will be expanded to twelve members, with the addition of three directors from Questcor. Questcor’s commercial operations will function as a separate business unit within Mallinckrodt’s Specialty Pharmaceuticals segment. — Nick Otto

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