Mallinckrodt completes $1.21B Cadence Pharma deal
Health care products maker Mallinckrodt said Wednesday it completed its $1.21 billion purchase of Cadence Pharmaceuticals.
The companies announced the deal in February and valued the final acquisition at $1.4 billion including Cadence's debt and other consideration. Mallinckrodt expects purchase to add to its adjusted net income immediately.
Cadence makes Ofirmev, an injectable version of the drug acetaminophen, the active ingredient in Tylenol. The company is based in San Diego and it focuses on selling products for use in hospitals. Mallinckrodt has said the deal will make its specialty drug business stronger.
Mallinckrodt reported $540 million in revenue in its most recent fiscal quarter, and expects $2.2 billion to $2.3 billion in revenue for the year. The company is based in Dublin and was spun off from Covidien PLC in June.
Shares of Mallinckrodt lost $1.04, or $1.5 percent, to $70.22 in morning trading. Its shares had risen more than 38 percent so far this year.