Endo shareholders will receive $80 million in cash and own 49.9% of the combined company, while Mallinckrodt shareholders will own the remaining portion, valuing the company at $6.7 billion, the companies said Thursday.
The new company, which is expected to have revenue of $3.6 billion in 2025, will combine its branded drug businesses, such as Endo's Aveed injectable testosterone drug and Mallinckrodt's Acthar gel, as well as the kidney disease treatment Terlivaz.
According to Mallinckrodt CEO Siggy Olafsson, the deal “will create a larger and more diversified organization with the scale and resources necessary to unlock the full potential of both companies.”
Both companies also sell generics, including controlled drugs such as opioids.
They plan to combine their generics business and Endo's sterile injectables division into another company, which will be spun off after the deal closes.
Dublin-based Mallinckrodt has filed for bankruptcy twice: once in 2020 due to high debt and litigation over allegedly fraudulent marketing of highly addictive generic opioids, and again in 2023 due to declining sales at its core businesses.
As part of the second restructuring, Mallinckrodt managed to reduce the previously agreed opioid settlement amount by $1 billion, which allowed for the settlement of about 3,000 lawsuits.
Endo filed for bankruptcy in 2022 and completed financial restructuring last year.
The combined company will benefit from Mallinckrodt and Endo's “deep experience in complex, highly regulated products, as well as a strong culture of regulatory compliance,” the company said in a statement Thursday.
Endo will become a wholly owned unit of Mallinckrodt, and Olafsson will take over as CEO of the combined company after the deal is expected to close in the second half of 2025.
The new company's shares will be listed on the New York Stock Exchange.
Lazard acted as financial advisor to Mallinckrodt, and Goldman Sachs & Co. LLC acted as financial advisor to Endo.
Source: Reuters
