Mallinckrodt Buys Cadence Pharma for $1.3 Billion
A smallish acquisition to report Tuesday morning: Ireland-based specialty drug maker
Mallinckrodt is buying
(CADX) for $14 per share, or a 27% premium over Monday's close. The total cost of the acquisition is $1.3 billion.
Cadence's lead product is Ofirmev, an intravenous formulation of the painkiller acetaminophen used to treat hospitalized patients. Ofirmev sales in 2013 were $110.5 million, Cadence announced last month. The Street expects 2014 Ofirmev sales of $168 million.
"The acquisition of Cadence Pharmaceuticals is consistent with our goal of becoming a leading global specialty pharmaceuticals company," said Mallinckrodt CEO Mark Trudeau, in a statement.
Mallinckrodt expects the Cadence acquisition to be accretive to fiscal year 2014 earnings on an adjusted basis. The deal is expected to close in March.