By Estel Grace Masangkay
Global specialty pharmaceutical company Mallinckrodt announced that it has accomplished the acquisition of Questcor Pharmaceuticals for an estimated $5.8 billion in cash and stock transaction.
The merger was first announced by Mallinckrodt in April and was subsequently met with strong approval by the shareholders of both companies. As part of the agreement, Questcor Pharmaceuticals shareholders will receive $30.00 in cash. Each Questcor share will also be compensated with 0.897 of a Mallinckrodt ordinary share.
Questcor’s commercial operations for HP Acthar Gel, its FDA-approved treatment for a number of autoimmune and inflammatory conditions, will continue as a separate business unit. This will be renamed Autoimmune and Rare Diseases business and will remain inside Mallinckrodt’s Specialty Pharmaceuticals division.
H.P. Acthar Gel (repository corticotropin injection) is currently approved for 19 indications, including treatment of proteinuria in the nephrotic syndrome of the idiopathic type, treatment of acute exacerbations of multiple sclerosis, and treatment of infantile spasms. The drug is also used to treat rare and closely linked neuromuscular disorders dermatomyositis and polymyositis. Mallinckrodt said it is considering developing the drug for other on-label indications.
Mark Trudeau, President and CEO of Mallinckrodt, welcomed the Questcor team to the company and discussed plans for Acthar Gel. “We are pleased to complete this transformative transaction… HP Acthar Gel has demonstrated success in treating patients suffering from a variety of devastating and difficult-to-treat autoimmune and inflammatory illnesses. We are confident that Acthar will be a strong complement to Mallinckrodt's broadening portfolio of leading specialty pharmaceutical brands, and we look forward… to capitaliz[ing] on the many opportunities it presents.”
The company expects to diversify its offerings with the acquisition and addition of Acthar Gel to other specialty products including Ofirmev, Exalgo, and Xartemis XR.
Earlier this year Mallinckrodt also announced the completion of its acquisition of Cadence Pharmaceuticals and its pain product Ofirmev for approximately $1.4 billion.