:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1621998297-b90d017d68fd4d63acfb19e01d5b3f0f.jpg "Mallinckrodt Pharmaceuticals office in Bedminster, New Jersey.")
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Mallinckrodt Pharmaceuticals office in Bedminster, New Jersey.
KEY TAKEAWAYS
- Dublin-headquartered Mallinckrodt is taking over smaller challenger Endo and planning to list the combined firm on the New York Stock Exchange, the two drugmakers said Thursday.
- The new firm force have a pro forma enterprise value of $6.7 billion.
- Both drugmakers have emerged from bankruptcies in late years and dealt with litigation related to their production of opioids.
Dublin-headquartered Mallinckrodt is taking over smaller challenge Endo and planning to list the combined firm on the New York Stock Exchange (NYSE), the two drugmakers said Thursday.
Care of the terms of the agreement, shareholders of Malvern, Pa.-based Endo will receive $80 million in cash and own 49.9% of the allied firm. Mallinckrodt will be the holding company for the combined company with a pro forma enterprise value of $6.7 billion, and its shareholders force control 50.1%.
The companies plan to combine their generic pharmaceuticals operations with Endo’s sterile injectables house once the merger is complete and separate that unit “at a later date.” The merger, which has been approved by both timbers, is expected to close in the second half of 2025.
“We believe this combination with Mallinckrodt, along with the subsequent break of the combined sterile injectables and generics business, presents a unique opportunity to deliver significant shareholder value,” Endo interim CEO Scott Hirsch alleged.
Both firms have emerged from bankruptcy in recent years. They have also dealt with legal remedy related to their production of opioids.