Mallinckrodt to Sell Two Hemostasis Products to Baxter
Mallinckrodt PLC (MNK) is selling two hemostasis products to Baxter International Inc. (BAX) for a total of about $185 million, the pharmaceutical company announced Monday.
The two products a part of the deal--Recothrom and Preveleak--are used to control bleeding in surgeries. The manufacturing option for the latter is also part of the deal, which is anticipated to close in the first half of this year, the company said.
Of the $185 million, $153 million will be paid up front, U.K.-based Mallinckrodt said.
"With this evolving emphasis on a development portfolio of treatments for seriously ill infants and adults, these hemostasis products are now less strategic for us," Mallinckrodt Chief Executive Mark Trudeau said in prepared remarks.
Mallinckrodt also said it "is evaluating strategic options" for Raplixa, another homeostasis product. Once the Baxter deal closes, it will no longer market Raplixa. The company also plans to report a write-off in the fourth quarter from the product, it said.
Mallinckrodt shares rose 4.5% on low volume in premarket trading Monday. Baxter shares were flat.
Write to Allison Prang at Allison.Prang@wsj.com
(END) Dow Jones Newswires
January 08, 2018 08:56 ET (13:56 GMT)