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Takeaways from the Key Takeaways
- The two drugmakers announced Thursday that Dublin-based Mallinckrodt will acquire smaller rival Endo, and plan to list the combined company on the New York Stock Exchange.
- The new company will have an enterprise value of $6.7 Billion.
- Both drugmakers emerged from bankruptcy in recent years, and they have also dealt with litigation related their production of opioids.
The two drugmakers announced Thursday that Dublin-based Mallinckrodt will acquire smaller rival Endo, and plan to list the combined company on the New York Stock Exchange.
The agreement stipulates that shareholders of Malvern-based Endo, who own 49.9%, will receive $80m in cash. Mallinckrodt is the holding company of the combined firm with a proforma enterprise valuation of $6.7 billion. Its shareholders will control 50%.
The companies plan to combine their generic pharmaceuticals operations with Endo's sterile injectables business once the merger is complete and separate that unit "at a later date." The merger has been approved by the boards of both companies and is expected to close during the second half in 2025.
"We believe this combination with Mallinckrodt, along with the subsequent separation of the combined sterile injectables and generics business, presents a unique opportunity to deliver significant shareholder value," Endo interim CEO Scott Hirsch said.
Both firms have emerged out of bankruptcy in the past few years. They have also been involved in litigation relating their production of opioids.
