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Mallinckrodt plans to
spin off specialty generics business
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[December 06, 2018]
(Reuters) - Mallinckrodt Plc <MNK.N> said
on Thursday it planned to spin off its specialty generics business to
shareholders by the second half of 2019, capping a two-year long effort
to look for strategic options for the unit.
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 The business, which accounted for 26.5 percent of net sales in
fiscal 2017, markets specialty generic drugs that include a variety
of opioid-based products.
The new company will also include constipation drug Amitiza, which
Mallinckrodt added through its acquisition of Sucampo
Pharmaceuticals last year.
The other publicly traded company will hold the remaining business
of specialty branded products such as infantile spasms and multiple
sclerosis treatment Acthar.
The spun-off company will assume the Mallinckrodt name and will be
led by current Chief Financial Officer Matthew Harbaugh, while the
specialty branded business will be renamed later and will be headed
by Chief Executive Officer Mark Trudeau.
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The planned separation is expected through a pro-rata distribution
of common stock to shareholders and will be tax-free, Mallinckrodt
said.
India's Aurobindo Pharma Ltd <ARBN.NS> earlier this year had looked
to buy Mallinckrodt's specialty generics business for about $800
million to $900 million but dropped the plan, according to media
reports.
(Reporting by Tamara Mathias and Saumya Sibi Joseph in Bengaluru;
Editing by Sriraj Kalluvila)
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