Irish pharmaceutical company Mallinckrodt will pay $5.6 billion in cash and stock for Anaheim-based Questcor Pharmaceuticals Inc., a fast-growing bio-pharmaceutical firm that specializes in treating multiple sclerosis, the companies announced Monday.
Under the terms of the deal, Questcor shareholders will be paid $30 a share in cash and 0.897 of a share of Mallinckrodt stock for each share of Questcor common stock they own.
If the deal is approved, Mallinckrodt shareholders will own nearly 51% of the combined company; former Questcor shareholders will own the remaining stake.
The merger "will substantially increase the scale, diversification, cash flow and profitability of our business," said Mark Trudeau, Mallinckrodt's chief executive. "With Questcor, combined with our recently completed acquisition of Cadence Pharmaceuticals, the new Mallinckrodt will have a significant, established presence with prescribers, payers and hospitals."
Questcor, formed in 1999, is a specialty firm that primarily treats chronic autoimmune and inflammatory disorders. One of its products is Acthar Gel, which is used in the treatment of multiple sclerosis.
The combined company will be based in Dublin with Trudeau as chief executive. The board of directors will expand by three new members from Questcor, the companies said.
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