Mallinckrodt to sell Recothrom and Preveleak to Baxter for $185M

|About: Baxter International Inc (BAX)|By:, SA News Editor

Mallinckrodt (NYSE:MNK) inks an agreement with Baxter International (NYSE:BAX) to sell hemostasis products RECOTHROM Thrombin topical (Recombinant) and PREVELEAK Surgical Sealant for ~$185M, including an upfront payment of $153M.

The transaction also includes the manufacturing operation for PREVELEAK.

In the 12-month period ending September 29, 2017, sales of Mallinckrodt's hemostasis products were $56.2M, almost all from RECOTHROM and PREVELEAK.

Mallinckrodt says the deal will dilute its non-GAAP EPS by $0.10 - 0.18 this year, offset by share repurchases made in Q4 2017.

CEO Mark Trudeau says, "Mallinckrodt is transforming itself to become a top-performing specialty pharmaceutical company. We're increasing our focus on innovative medicines and therapies like terlipressin and StrataGraft®, and recently acquired products stannsoporfin, xenon gas and OCR-002 – as well as, at the potential close of the Sucampo acquisition, VTS-270 and CPP-1X – that can make a real difference in patient populations with very high unmet medical needs. With this evolving emphasis on a development portfolio of treatments for seriously ill infants and adults, these hemostasis products are now less strategic for us."

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