Drug Firm Cadence Bought By Mallinckrodt For $1.3 Billion
Irish drug company Mallinckrodt has come to terms with a purchase price on San Diego based firm Cadence Pharmaceuticals. The price has been reported at $1.3 billion. The deal gives Mallinckrodt control over Cadence’s line of specialty drugs, which were coveted. Cadence’s most well-known commercial drug is Ofirmev, an injectable version of acetaminophen. Ofirmev has been a success since it was released in January of 2011, having been used to treat between six and sevem million patients.
Mark Trudeau, CEO of Mallinckrodt, believes that the acquisition makes the company a bigger player in the area of specialty pharmaceuticals. “The acquisition of Cadence Pharmaceuticals is consistent with our goal of becoming a leading global specialty pharmaceuticals company. Ofirmev’s growth is driven by an expanding base of physicians who are prescribing the product for an increasing number of surgical patients, and we believe the product will be an outstanding addition to the brands component of Mallinckrodt’s specialty pharmaceutical segment. We have been impressed with the strong relationships that Cadence’s commercial organizations have established with customers in the hospital channel and are excited by the opportunity to build on these relationships to expand our platform in this area."
Ted Schroeder, CEO of Cadence, also provided comment on the deal. He believes that Ofirmev can continue to grow with Mallinckrodt’s resources. “We are very proud of what our employees have accomplished, and in particular the very strong growth we have achieved with Ofirmev. We believe Mallinckrodt is a natural fit to provide the resources and expertise that can expand patient access for Ofirmev. Additionally, this transaction will provide Cadence shareholders with a strong return on their investment.”