Mallinckrodt Reaches Agreement to Sell Therakos® Business to CVC for $925 Million
Mallinckrodt plc has agreed to sell its Therakos business to CVC Capital Partners for $925 million. This strategic move aims to optimize Mallinckrodt's capital structure and focus on core areas of expertise. The company plans to use the net proceeds to reduce its net debt by more than 50%. Therakos, a fully integrated extracorporeal photopheresis (ECP) delivery system, is approved for use in multiple countries to treat immune-related diseases.
CVC, with its expertise in healthcare, intends to invest in Therakos' research, development, and geographic expansion. The transaction is expected to close in Q4 2024, subject to regulatory approvals. Key Therakos employees will transition with the business to ensure continuity in product support and stakeholder relations.
Mallinckrodt plc ha concordato di vendere il suo business Therakos a CVC Capital Partners per 925 milioni di dollari. Questa mossa strategica mira a ottimizzare la struttura del capitale di Mallinckrodt e a concentrarsi su aree chiave di competenza. L'azienda prevede di utilizzare il ricavato netto per ridurre il suo debito netto di oltre il 50%. Therakos, un sistema di somministrazione della fotoforési extracorporea (ECP) completamente integrato, è approvato per l'uso in più paesi per trattare malattie correlate al sistema immunitario.
CVC, con la sua esperienza nel settore sanitario, intende investire nella ricerca, nello sviluppo e nell'espansione geografica di Therakos. Si prevede che la transazione si concluda nel Q4 2024, soggetta ad approvazioni normative. I principali dipendenti di Therakos transiteranno con l'azienda per garantire continuità nel supporto ai prodotti e nelle relazioni con le parti interessate.
Mallinckrodt plc ha acordado vender su negocio de Therakos a CVC Capital Partners por 925 millones de dólares. Este movimiento estratégico tiene como objetivo optimizar la estructura de capital de Mallinckrodt y enfocarse en áreas clave de competencia. La compañía planea utilizar los ingresos netos para reducir su deuda neta en más del 50%. Therakos, un sistema de entrega de fotoféresis extracorpórea (ECP) completamente integrado, cuenta con la aprobación para su uso en varios países para tratar enfermedades relacionadas con el sistema inmunológico.
CVC, con su experiencia en el sector de la salud, tiene la intención de invertir en la investigación, el desarrollo y la expansión geográfica de Therakos. Se espera que la transacción se cierre en Q4 2024, sujeta a aprobaciones regulatorias. Los empleados clave de Therakos transitarán con el negocio para asegurar la continuidad en el soporte del producto y las relaciones con los interesados.
Mallinckrodt plc는 Therakos 사업을 CVC Capital Partners에 9억 2500만 달러에 매각하기로 합의했습니다. 이 전략적 결정은 Mallinckrodt의 자본 구조를 최적화하고 핵심 전문 분야에 집중하기 위한 것입니다. 회사는 순수익을 사용하여 순부채를 50% 이상 줄일 계획입니다. 완전 통합된 체외 광혈장분리(ECP) 전달 시스템인 Therakos는 면역 관련 질환 치료를 위해 여러 국가에서 사용이 승인되었습니다.
CVC는 의료 분야에서의 경험을 바탕으로 Therakos의 연구, 개발 및 지리적 확장에 투자할 의도를 가지고 있습니다. 이 거래는 2024년 4분기에 마무리될 것으로 예상되며, 규제 승인에 따라 달라질 것입니다. 주요 Therakos 직원들은 제품 지원 및 이해관계자 관계의 지속성을 보장하기 위해 사업과 함께 전환될 것입니다.
Mallinckrodt plc a convenu de vendre son activité Therakos à CVC Capital Partners pour 925 millions de dollars. Ce mouvement stratégique vise à optimiser la structure du capital de Mallinckrodt et à se concentrer sur des domaines clés d'expertise. L'entreprise prévoit d'utiliser le produit net pour réduire sa dette nette de plus de 50%. Therakos, un système de livraison de photophérèse extracorporelle (ECP) entièrement intégré, est approuvé pour son utilisation dans plusieurs pays pour traiter des maladies liées au système immunitaire.
CVC, avec son expertise dans le domaine de la santé, a l'intention d'investir dans la recherche, le développement et l'expansion géographique de Therakos. La transaction devrait se clôturer au Q4 2024, sous réserve des approbations réglementaires. Des employés clés de Therakos procéderont à une transition avec l'entreprise pour garantir la continuité dans le soutien des produits et les relations avec les parties prenantes.
Mallinckrodt plc hat zugestimmt, sein Therakos-Geschäft für 925 Millionen Dollar an CVC Capital Partners zu verkaufen. Diese strategische Entscheidung zielt darauf ab, die Kapitalstruktur von Mallinckrodt zu optimieren und sich auf Kernkompetenzen zu konzentrieren. Das Unternehmen plant, die Nettoeinnahmen zu verwenden, um seine Nettoverschuldung um mehr als 50% zu reduzieren. Therakos ist ein vollständig integriertes System zur extrakorporalen Photopherese (ECP), das in mehreren Ländern zur Behandlung von immunbezogenen Krankheiten genehmigt ist.
CVC, mit seiner Expertise im Gesundheitswesen, beabsichtigt, in die Forschung, Entwicklung und geografische Expansion von Therakos zu investieren. Der Abschluss der Transaktion wird für Q4 2024 erwartet, unter Vorbehalt behördlicher Genehmigungen. Wichtige Therakos-Mitarbeiter werden mit dem Unternehmen wechseln, um die Kontinuität in der Produktunterstützung und den Beziehungen zu den Stakeholdern sicherzustellen.
- Sale of Therakos business for $925 million
- Net debt reduction of more than 50% using proceeds
- Strategic focus on core areas of expertise
- Potential for Therakos expansion under CVC's ownership
- Divestiture of a revenue-generating business unit
Insights
This $925 million divestiture of Therakos is a significant move for Mallinckrodt. The company's plan to use the proceeds to reduce net debt by over 50% is a strong positive, potentially improving its financial health and balance sheet. This could lead to lower interest expenses and increased financial flexibility going forward.
However, investors should consider the impact on future revenue streams. While the sale provides immediate cash, it also means losing a revenue-generating asset. The long-term effects on Mallinckrodt's growth prospects and diversification strategy need careful evaluation.
The Q4 2024 expected closing suggests a relatively smooth regulatory process, which is encouraging. Overall, this move aligns with Mallinckrodt's stated strategy to optimize its capital structure and focus on core areas, potentially leading to a more streamlined and focused business model.
CVC's acquisition of Therakos presents interesting implications for the extracorporeal photopheresis (ECP) market. With CVC's expertise in healthcare and life sciences, we could see accelerated R&D and potential expansion into new indications and geographies for Therakos.
This move might intensify competition in the immune-related diseases treatment space. CVC's resources could potentially lead to faster innovation and broader market reach for Therakos, challenging other players in this niche but growing market.
For healthcare providers and patients, this could mean improved access to ECP therapy and potentially new treatment options in the future. However, it's important to monitor how this change in ownership might affect pricing and availability of Therakos treatments in various markets.
This deal showcases a strategic divestiture trend in the pharmaceutical industry, where companies are streamlining portfolios to focus on core competencies. The
For CVC, this acquisition aligns with their healthcare investment strategy, potentially creating synergies with their existing portfolio. The retention of key Therakos employees is important for maintaining operational continuity and preserving value.
The transaction structure, including customary adjustments, suggests a well-negotiated deal. The involvement of top-tier advisors (Lazard, UBS) indicates the deal's complexity and importance. Investors should watch for any post-closing adjustments or earn-out provisions that could affect the final transaction value.
Divestiture Advances Mallinckrodt's Strategic Priorities to Optimize Capital Structure and Focus on Core Areas of Expertise
Mallinckrodt to Use Net Proceeds to Reduce Net Debt by More Than
CVC Brings Resources and Expertise to Further Develop and Commercialize Therakos
Therakos is a fully integrated extracorporeal photopheresis (ECP) delivery system for autologous immunomodulatory therapy. With approvals for use in the
Under the terms of the agreement, key employees who work on Therakos will transition with the business and continue supporting the product and its stakeholders.
On behalf of CVC's Healthcare team, Cathrin Petty and Phil Robinson said, "We see significant opportunities ahead to expand Therakos' indications, enter new geographies and bring this innovative treatment to more patients around the world. We look forward to working closely with the talented Therakos team and adding this best-in-class ECP system with an unparalleled efficacy, safety and tolerability profile to our portfolio of healthcare businesses."
"Today's announcement underscores our commitment to executing on our strategic priorities and creating value for our stakeholders," said Siggi Olafsson, President and Chief Executive Officer of Mallinckrodt. "This transaction provides the Therakos business with an ideal partner to invest in its continued growth, and we look forward to closely working with CVC to transition Therakos for the benefit of patients, healthcare providers, partners and employees. I thank the Therakos team for their ongoing commitment and dedication to improving the lives of patients."
Mallinckrodt intends to use net proceeds from the transaction to reduce its net debt by more than
Advisors
Lazard is serving as Mallinckrodt's financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as primary legal counsel, with Arthur Cox serving as counsel in
UBS is serving as CVC's financial advisor, together with Freshfields Bruckhaus Deringer (legal counsel), PWC (financial) and Candesic (commercial).
About Mallinckrodt
Mallinckrodt is a global business consisting of multiple wholly owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. The Company's Specialty Brands reportable segment's areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, hepatology, nephrology, pulmonology, ophthalmology and oncology; immunotherapy and neonatal respiratory critical care therapies; analgesics; and gastrointestinal products. Its Specialty Generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients. To learn more about Mallinckrodt, visit www.mallinckrodt.com.
Mallinckrodt uses its website as a channel of distribution of important company information, such as press releases, investor presentations and other financial information. It also uses its website to expedite public access to time-critical information regarding the Company in advance of or in lieu of distributing a press release or a filing with the
About CVC Capital Partners
CVC is a leading global private markets manager with a network of 29 office locations throughout EMEA, the
CAUTIONARY STATEMENTS RELATED TO FORWARD-LOOKING STATEMENTS
Statements in this press release that are not strictly historical, including statements regarding future financial condition and operating results, expected product launches, legal, economic, business, competitive and/or regulatory factors affecting Mallinckrodt's businesses, the ongoing strategic review, and any other statements regarding events or developments Mallinckrodt believes or anticipates will or may occur in the future, may be "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties.
There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include risks and uncertainties related to, among other things: the parties' ability to satisfy the conditions to the divestiture of the Therakos business, including required regulatory approvals, and the ability to complete the divestiture on the anticipated timeline or at all; the potential impact of the divestiture on our businesses and the risk that consummating the divestiture may be more difficult, time-consuming and costly than expected; changes in Mallinckrodt's board of directors, business strategy and performance; Mallinckrodt's evaluation of the assets across its portfolio, and its related pursuit of any divestiture opportunities including completion of the sale of Therakos; the exercise of contingent value rights by the Opioid Master Disbursement Trust II (the "Trust"); Mallinckrodt's repurchases of debt securities; the liquidity, results of operations and businesses of Mallinckrodt and its subsidiaries; governmental investigations and inquiries, regulatory actions, and lawsuits, in each case related to Mallinckrodt or its officers; Mallinckrodt's contractual and court-ordered compliance obligations that, if violated, could result in penalties; historical commercialization of opioids, including compliance with and restrictions under the global settlement to resolve all opioid-related claims; matters related to Acthar Gel, including the settlement with governmental parties to resolve certain disputes and compliance with and restrictions under the related corporate integrity agreement; the ability to maintain relationships with Mallinckrodt's suppliers, customers, employees and other third parties following the emergence from the 2023 bankruptcy proceedings, as well as perceptions of the Company's increased performance and credit risks associated with its constrained liquidity position and capital structure; the possibility that Mallinckrodt may be unable to achieve its business and strategic goals even now that the emergence from the 2023 bankruptcy proceedings was successfully consummated; the non-dischargeability of certain claims against Mallinckrodt as part of the bankruptcy process; developing, funding and executing Mallinckrodt's business plan; Mallinckrodt's capital structure since its emergence from the 2023 bankruptcy proceedings; scrutiny from governments, legislative bodies and enforcement agencies related to sales, marketing and pricing practices; pricing pressure on certain of Mallinckrodt's products due to legal changes or changes in insurers' or other payers' reimbursement practices resulting from recent increased public scrutiny of healthcare and pharmaceutical costs; the reimbursement practices of governmental health administration authorities, private health coverage insurers and other third-party payers; complex reporting and payment obligations under the Medicare and Medicaid rebate programs and other governmental purchasing and rebate programs; cost containment efforts of customers, purchasing groups, third-party payers and governmental organizations; changes in or failure to comply with relevant laws and regulations; any undesirable side effects caused by Mallinckrodt's approved and investigational products, which could limit their commercial profile or result in other negative consequences; Mallinckrodt's and its partners' ability to successfully develop, commercialize or launch new products or expand commercial opportunities of existing products, including Acthar Gel (repository corticotropin injection) Single-Dose Pre-filled SelfJect™ Injector and the INOmax Evolve platform; Mallinckrodt's ability to successfully identify or discover additional products or product candidates; Mallinckrodt's ability to navigate price fluctuations; competition; Mallinckrodt's and its partners' ability to protect intellectual property rights, including in relation to ongoing and future litigation; limited clinical trial data for Acthar Gel; the timing, expense and uncertainty associated with clinical studies and related regulatory processes; product liability losses and other litigation liability; material health, safety and environmental liabilities; business development activities or other strategic transactions; attraction and retention of key personnel; the effectiveness of information technology infrastructure, including risks of external attacks or failures; customer concentration; Mallinckrodt's reliance on certain individual products that are material to its financial performance; Mallinckrodt's ability to receive sufficient procurement and production quotas granted by the
The "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Mallinckrodt's Annual Report on Form 10-K for the fiscal year ended December 29, 2023, Quarterly Report on Form 10-Q for the quarterly period ended March 29, 2024, Quarterly Report on Form 10-Q for the quarterly period ended June 28, 2024, to be filed with the SEC, and other filings with the SEC, which are available from the SEC's website (www.sec.gov) and Mallinckrodt's (www.mallinckrodt.com), identify and describe in more detail the risks and uncertainties to which Mallinckrodt's businesses are subject. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business. The forward-looking statements made herein speak only as of the date hereof and Mallinckrodt does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise, except as required by law. Given these uncertainties, one should not put undue reliance on any forward-looking statements.
Mallinckrodt Contacts
Investor Relations
Derek Belz
Vice President, Investor Relations
314-654-3950
derek.belz@mnk.com
Patient Advocacy
Derek Naten
Vice President, Government Affairs
202-459-4143
derek.naten@mnk.com
Media
Michael Freitag / Aaron Palash / Aura Reinhard
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
CVC Contacts
Nick Board
CVC, Director Communications
nboard@cvc.com
Mallinckrodt, the "M" brand mark and the Mallinckrodt Pharmaceuticals logo are trademarks of a Mallinckrodt company. Other brands are trademarks of a Mallinckrodt company or their respective owners. © 2024.
1CVC also made an irrevocable commitment to acquire the shares of the French company operating the Therakos business, Therakos (
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SOURCE Mallinckrodt plc
FAQ
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