Malvern-based Endo has agreed to merge with Mallinckrodt in a cash and stock deal, valuing the combined pharmaceutical company at $6.7 billion, writes John George for the Philadelphia Business Journal.
Both Endo’s predecessor company, Endo International, and Mallinckrodt recently went through bankruptcies and also had to deal with litigation regarding their alleged roles in the opioid abuse epidemic plaguing the country.
Following the close of the transaction, the companies will combine their respective generics businesses and Endo’s sterile injectables business. At a later date, they intend to separate their combined branded drugs business.
As part of the deal, Endo shareholders will receive $80 million in cash along with a 49.9 percent ownership stake in the merged company, while Mallinckrodt shareholders will hold a majority 50.1 percent.
“The combined company will possess a branded business with the scale, cash flow, and balance sheet strength to invest in both internal and external growth opportunities — including pursuing commercial-stage assets,” said Scott Hirsch, interim CEO of Endo. “Additionally, the stable and robust free cash flow generated by the combined sterile injectables and generics business should enable consistent capital returns to shareholders following its separation.”
Read more about Endo locking into a merger agreement in the Philadelphia Business Journal.
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