Mallinckrodt said today it will acquire Questcor Pharmaceuticals for about $5.6 billion, in a deal that broadens the buyer’s specialty drug portfolio with Questcor’s lucrative multiple sclerosis treatment H.P. Acthar Gel (repository corticotropin injection).
Mallinckrodt reasons that Acthar is a strong complement to its portfolio of specialty pharmaceutical brands, including pain drug Ofirmev® (Acetaminophen), which the company acquired when it snapped up Cadence Pharmaceuticals for $1.3 billion earlier this year.
Acthar is an injectable drug approved by the FDA for 19 indications, but increasingly used in the management of autoimmune and inflammatory conditions.In addition to MS relapses in adults, Acthar is also indicated for MS proteinuria associated with nephrotic syndrome, certain rheumatology-related conditions, and infantile spasms.
Acthar generated net sales for Questcor of $761.3 million in 2013, up 49.6% from calendar 2012. Acthar accounted for 95% of Questcor’s 2013 revenues: The company finished 2013 with a 57% jump in net sales, to
Mallinckrodt’s portfolio also includes opioid Exalgo® (hydromorphone HCI) for managing moderate to severe pain, and the oxycodone-acetaminophen combination acute-pain drug Xartemis™ XR.
Last June, Questcor acquired rights from
“We believe this transaction will provide a strong and sustainable platform for future revenue and earnings growth, and provide exceptional value for shareholders of both
Questcor also provides specialty contract manufacturing services to the global pharmaceutical industry through its wholly-owned subsidiary
The deal—expected to be completed during the third quarter—has been approved by the boards of both companies and is subject to customary closing conditions.
Questcor shareholders will receive
The deal represents a premium of approximately 27% per share over Questcor's stock price, and a premium of about 33% over Questcor's trailing 20-trading-day volume-weighted average price, both as of April 4.
Mallinckrodt said the transaction is expected to be immediately accretive to its fiscal year 2014 adjusted diluted earnings per share, and significantly accretive in fiscal year 2015.