STAINES-UPON-THAMES, United
Kingdom, Nov. 4, 2019
/PRNewswire/ -- Mallinckrodt
plc (NYSE: MNK), a global biopharmaceutical company, today
announced it has completed the sale of its wholly owned subsidiary
BioVectra Inc. to an affiliate of H.I.G. Capital, a leading global
private equity investment firm.
The terms of the transaction were updated since initial
announcement, with total consideration of up to $250 million including an upfront payment of
$135 million and contingent
consideration of $115 million based
on the long-term performance of the business.
"This transaction marks an advancement of Mallinckrodt's strategic focus on branded,
high-growth biopharmaceuticals," said Mark Trudeau, President and Chief Executive
Officer. "While we recognize the longer-term growth
potential of BioVectra, we believe this company will best achieve
its potential under H.I.G. Capital, and we are confident that this
sale will enable us to participate financially in the future
success of the business."
About BioVectra
BioVectra is a contract development
and manufacturing organization (CDMO) that serves global
pharmaceutical and biotech companies with full-service cGMP
outsourcing solutions for intermediates and active pharmaceutical
ingredients (APIs). An innovative and reliable service partner with
a strong regulatory history, BioVectra has over 45 years of
experience specializing in:
- cGMP microbial fermentation
- Complex chemistry – high potency APIs
- Biologics
- Formulation development
For more information about BioVectra, please visit
www.biovectra.com.
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, nephrology, pulmonology and
ophthalmology; 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 U.S. Securities and
Exchange Commission (SEC) disclosing the same information.
Therefore, investors should look to the Investor Relations page of
the website for important and time-critical information. Visitors
to the website can also register to receive automatic e-mail and
other notifications alerting them when new information is made
available on the Investor Relations page of the website.
CAUTIONARY STATEMENTS RELATED TO FORWARD-LOOKING
STATEMENTS
Statements in this document about Mallinckrodt that are not strictly historical,
including statements regarding the potential use of proceeds from
the divestiture; payment on future contingent payments; future
financial condition and operating results; economic, business,
competitive and/or regulatory factors affecting Mallinckrodt's businesses; and any other statements
regarding events or developments that the company 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
buyer's ability to make payments on future contingent payments;
general economic conditions and conditions affecting the industries
in which Mallinckrodt operates; the
commercial success of Mallinckrodt's
products; Mallinckrodt's ability to
realize anticipated growth, synergies and cost savings from
acquisitions; conditions that could necessitate an evaluation of
Mallinckrodt's goodwill and/or
intangible assets for possible impairment; changes in laws and
regulations; Mallinckrodt's ability to
successfully integrate acquisitions of operations, technology,
products and businesses generally and to realize anticipated
growth, synergies and cost savings; Mallinckrodt's and Mallinckrodt's licensers' ability to successfully
develop or commercialize new products; Mallinckrodt's and Mallinckrodt's licensers' ability to protect
intellectual property rights; Mallinckrodt's ability to receive procurement and
production quotas granted by the U.S. Drug Enforcement
Administration; customer concentration; Mallinckrodt's reliance on certain individual
products that are material to its financial performance; cost
containment efforts of customers, purchasing groups, third-party
payers and governmental organizations; the reimbursement practices
of a small number of public or private insurers; pricing pressure
on certain of Mallinckrodt's products
due to legal changes or changes in insurers' reimbursement
practices resulting from recent increased public scrutiny of
healthcare and pharmaceutical costs; limited clinical trial data
for Acthar Gel; complex reporting and payment obligations under
healthcare rebate programs; Mallinckrodt's ability to navigate price
fluctuations; future changes to U.S. and foreign tax laws;
Mallinckrodt's ability to achieve
expected benefits from restructuring activities; complex
manufacturing processes; competition; product liability losses and
other litigation liability; ongoing governmental investigations;
material health, safety and environmental liabilities; retention of
key personnel; conducting business internationally; the
effectiveness of information technology infrastructure; and
cybersecurity and data leakage risks; Mallinckrodt's substantial indebtedness and its
ability to generate sufficient cash to reduce its indebtedness; and
any future actions taken with respect to the Specialty Generics
business.
These and other factors are identified and described in more
detail in the "Risk Factors" section of Mallinckrodt's Annual Report on Form 10-K for the
fiscal year ended December 28, 2018.
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.
CONTACTS
Investor Relations
Daniel J.
Speciale, CPA
Vice President, Investor Relations and IRO
314-654-3638
daniel.speciale@mnk.com
Media
Daniel Yunger
Kekst CNC
212-521-4879
mallinckrodt@kekstcnc.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. © 2019 Mallinckrodt. 9/19
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SOURCE Mallinckrodt plc