St. Louis-Area Pharma Company Expands With Acquisition

Photo courtesy of Creative commons
Photo courtesy of Creative commons

Mallinckrodt Pharmaceuticals has agreed to pay $2.1 billion to acquire a San Diego company that makes pain medicine. The deal, which if approved by shareholders could close by the end of March, would turn Cadence Pharmaceuticals into a wholly owned subsidiary of Mallinckrodt PLC, which is headquartered in Hazelwood.

This is Mallinckrodt’s first purchase since it spun off last summer from its former parent, Covidien, to become a publicly traded company again. Under the proposal, Mallinckrodt would pay $14 per share, which represents a premium to Cadence shareholders of about 32 percent. That share price is about 12 times Cadence’s annual revenue of about $110 million for fiscal year 2013.

Cadence produces and markets OFIRMEV, an acetaminophen injection that has been used by hospitals since 2011 to treat mild to moderate pain in surgical patients. Because it is a nonopioid, Mallinckrodt president and CEO Mark Trudeau said, doctors can prescribe it as an alternative to a traditional narcotic, which can be habit-forming and cause bleeding.

Read more from the St. Louis Post-Dispatch

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