This acquisition, Mallinckrodt's second deal in less
than two months, highlights its efforts to tap into the fast-growing
specialty drugs market.
The Irish company bought Cadence Pharmaceuticals Inc for $1.3
billion in February.
Questcor's shareholders will receive $30 in cash and 0.897
Mallinckrodt shares for each Questcor share held, for a total value
of about $86.10 per Questcor share, the companies said in a
statement on Monday.
Questcor's shares were trading at $91 before the bell.
Mallinckrodt's stock was up 11 percent at $69.50.
The offer represents a 27 percent premium to Questcor's Friday
Dublin-based Mallinckrodt, which was spun off from Covidien Plc in
July last year, said it expected the deal to add to adjusted
earnings in 2014 and significantly boost adjusted profit in 2015.
Acthar Gel is approved by the U.S. Food and Drug Administration for
19 conditions, many of which are associated with the treatment of
autoimmune and inflammatory diseases, including multiple sclerosis
and infantile spasms.
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Mallinckrodt will fund the deal through cash on hand and debt
financing from Barclays, which also advised the company on the
Wachtell, Lipton, Rosen & Katz and Arthur Cox were Mallinckrodt's
legal advisers in Ireland.
Centerview Partners was Questcor's financial adviser, and Latham &
Watkins LLP and Matheson were its legal advisers in Ireland.
(Reporting by Esha Dey in Bangalore; editing by Kirti Pandey)
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