Mallinckrodt Set to Buy Cadence Pharmaceuticals for $1.3B
Irish specialty pharmaceutical company Mallinckrodt PLC (NYSE:MNK) said Tuesday that it has plans to buy Cadence Pharmaceuticals Inc. (NASDAQ:CDAX), based out of San Diego, California, for $1.3 billion. Mallinckrodt will pay $14 per share at 32 percent premium to Cadence’s 30-day volume-weighted average trading price, the New York Times reports.
Cadence, a biopharmaceutical company, specializes in commercializing drugs for use in hospitals; Mallinckrodt hopes that the acquisition of Cadence will help the company expand both its specialty drug offerings and its reach in the hospital market. ”The acquisition of Cadence Pharmaceuticals is consistent with our goal of becoming a leading global specialty pharmaceuticals company,” said Mark Trudeau, Mallinckrodt’s president and CEO, in a press release.
Cadence’s product is Ofirmev, an intravenous painkiller and fever reducer first released onto the market in 2010 and which is expected to have generated $110.5 million in sales for the year 2013, compared with $50.1 million in product revenues in 2012. Cadence has reported strong growth for the drug since it initially appeared on the market four years ago.