Mallinckrodt to Acquire Cadence Pharmaceuticals

Mallinckrodt, a specialty pharmaceuticals company, and Cadence Pharmaceuticals, a biopharmaceutical company focused on commercializing products for use in the hospital setting, have entered into an agreement under which a subsidiary of Mallinckrodt will acquire all outstanding shares of Cadence Pharmaceuticals. The acquisition will be for $14.00 per share in cash or approximately $1.3 billion on a fully diluted basis.

As part of the transaction, Mallinckrodt will acquire Ofirmev (acetaminophen injection), a proprietary intravenous formulation of acetaminophen for the management of mild to moderate pain, the management of moderate to severe pain with adjunctive opioid analgesics, and the reduction of fever.

Subject to customary terms and conditions, the parties expect the transaction to close in mid- to late-March. Mallinckrodt expects the acquisition will be immediately accretive to its fiscal year 2014 adjusted diluted earnings per share, and significantly accretive to its fiscal year 2015 adjusted diluted earnings per share.

Source: Mallinckrodt