Mallinckrodt to acquire CNS Therapeutics
Mallinckrodt, the pharmaceuticals business of Covidien, a global healthcare products company, has agreed to acquire CNS Therapeutics, a St. Paul, Minn.-based specialty pharmaceutical company focused on neurological disorders and intractable chronic pain.
Mallinckrodt will acquire all of the outstanding capital stock of CNS Therapeutics for approximately $100 million. The transaction, subject to customary closing conditions, is expected to be completed during the Q4 2012. CNS currently has one marketed product and a diverse pipeline of pain and spasticity products in development.
"This acquisition supports our strategy of leveraging our therapeutic expertise and our core capabilities in manufacturing, regulatory and commercialization to serve patients," said Mark Trudeau, president of pharmaceuticals, Mallinckrodt. "CNS Therapeutics' marketed product line complements our branded portfolio. Their central nervous system and pain management products in development complement our pipeline and address an important need for patients."
Mallinckrodt is the largest U.S. supplier of opioid pain medications and among the top 10 generic pharmaceuticals manufacturers in the U.S., based on prescriptions. Last December, Covidien announced that it planned to spin off Mallinckrodt into a stand-alone company, a process that is expected to be completed in mid-2013.
Covidien does not expect the acquisition to have a material impact on its fiscal 2013 sales or earnings per share.