Mallinckrodt to buy Questcor in cash-and-shares deal

An earlier version of the story misstated Acthar’s sales and didn’t reflect payment for stock options in the total acquisition price.

Mallinckrodt PLC agreed to buy Questcor Pharmaceuticals Inc. for about $5.6 billion in cash and stock, in a deal expected to expand the scale and diversification of the specialty pharmaceutical company.

Ireland-based Mallinckrodt
  would gain Questcor’s
  H.P. Acthar gel, an injectable drug which has U.S. Food and Drug Adminstration approval for 19 indications, many related to autoimmune and inflammatory conditions. Sales of Acthar, which is Questcor’s biggest product, rose 50% to $761.3 million in 2013 and make up almost all of Questcor’s revenue.


Questcor’s operations will function as a separate business unit within Mallinckrodt’s specialty pharmaceuticals segment.

Mallinckrodt President and Chief Executive Mark Trudeau will lead the combined company. The company also expects to add Questcor executives to Mallinckrodt’s leadership team.

Questcor shareholders will receive $30 a share in cash and 0.897 Mallinckrodt shares for each share of Questcor that they own, valuing the offer at roughly $86.10 a share. The bid represents a 27% premium over Questcor’s Friday closing price.

After the deal closes, which is expected in the third quarter, Mallinckrodt holders will have a 50.5% stake in the combined company, while Questcor holders will have the remainder.

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The deal is expected to add to fiscal year per-share earnings this year and significantly boost them next year.

An expanded version of this report appears on

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