Mallinckrodt Announces Definitive Agreement to Acquire CNS Therapeutics, Inc.
HAZELWOOD, MO – September 24, 2012 – Mallinckrodt, the Pharmaceuticals business of Covidien (NYSE: COV), today announced a definitive agreement to acquire CNS Therapeutics, Inc., a privately held specialty pharmaceutical company focused on developing and commercializing products for site-specific administration to the central nervous system to treat neurological disorders and intractable chronic pain.
Mallinckrodt will acquire all of the outstanding capital stock of CNS Therapeutics, based in St. Paul, MN, for approximately $100 million. The transaction, subject to customary closing conditions, is expected to be completed during the fourth calendar quarter of 2012. CNS currently has one marketed product and a diverse pipeline of pain and spasticity products in development.
"This acquisition supports our strategy of leveraging our therapeutic expertise and our core capabilities in manufacturing, regulatory and commercialization to serve patients," said Mark Trudeau, President, Pharmaceuticals. "CNS Therapeutics' marketed product line complements our branded portfolio. Their central nervous system and pain management products in development complement our pipeline and address an important need for patients."
Mallinckrodt is the largest U.S. supplier of opioid pain medications and among the top 10 generic pharmaceuticals manufacturers in the U.S., based on prescriptions. Covidien announced last December that the Company planned to spin off Mallinckrodt into a stand-alone company, a process that is expected to be completed in mid-2013.
Assuming a fourth calendar quarter 2012 closing, Covidien does not expect this transaction to have a material impact on its fiscal 2013 sales or earnings per share.
Once the transaction has been completed, Covidien will report the CNS Therapeutics business in the Specialty Pharmaceuticals product line within the Pharmaceuticals segment.
Covidien is a leading global healthcare products company that creates innovative medical solutions for better patient outcomes and delivers value through clinical leadership and excellence. Covidien manufactures, distributes and services a diverse range of industry-leading product lines in three segments: Medical Devices, Pharmaceuticals and Medical Supplies. With 2011 revenue of $11.6 billion, Covidien has 43,000 employees worldwide in more than 65 countries, and its products are sold in over 140 countries. Please visit www.covidien.com to learn more about our business.
Mallinckrodt, the pharmaceuticals business of Covidien, is a vertically integrated leader in providing products used in diagnostic procedures and in the treatment of pain and related conditions. The company is the largest U.S. supplier, by prescription, of opioid pain medications and a leading manufacturer of active pharmaceutical ingredients. It is also the largest US supplier of the medical isotope technetium-99m and an industry leader in radiopharmaceuticals and contrast media and delivery systems. Sales in 2011 were $2.0 billion. Please visit www.mallinckrodt.com to learn more about our business.