Mallinckrodt PLC is acquiring specialty pharmaceutical firm InfaCare Pharmaceutical Corp. in a deal that could be worth as much as $425 million.
Trevose, Pennsylvania-based InfaCare is developing a therapy, known as stannsoporfin, to treat newborns at risk of developing jaundice. The FDA in December granted stannsoporfin fast track designation, which is designed to expedite the review of drugs that could fill an unmet medical need.
Mark Trudeau, Mallinckrodt’s president CEO, said in a statement that the purchase is “an excellent example of Mallinckrodt’s investment strategy.”
The pharmaceutical company, which has its U.S. headquarters in St. Louis, made an upfront payment of $80 million for InfaCare and could make additional payments of up to $345 million if regulatory and sales milestones are met.
Mallinckrodt estimates that the market for treatment for jaundice in babies in “key international companies” is in the range of 150,000 to 275,000 annually.
Read more: St. Louis Business Journal