This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Mallinckrodt Acquires Questcor for $5.6B

NEW YORK (The Deal) -- Dublin, Ireland-based Mallinckrodt Pharmaceuticals has broadened its strategic product growth platform with the $5.6 billion acquisition of Questcor Pharmaceuticals (QCOR).

Questcor's major product is Acthar gel, a depot injectable corticosteroid approved by the Food and Drug Administration for 19 conditions, mostly autoimmune and inflammatory. Mallinckrodt executives say they plan to expand the market for Acthar internationally.

Questcor's net sales grew 57%, to $799 million, in 2013.

Anaheim, Calif.-based Questcor shareholders will receive $30 in cash and 0.897 Mallinckrodt shares for each share of Questcor common stock they own.

Must Read: Mallinckrodt Grabs Questcor for $5.6B, Sends Shares Surging

The parties expect the deal to close in the third calendar quarter this year, although it is contingent on shareholder acceptance and regulatory approvals. Former Questcor shareholders would own 49.5% of the merged company.

Mallinckrodt, which has been exceptionally active in M&A over the past year, says this deal is its "high-water market" for the time being. However, it will continue to look at smaller acquisitions of companies and products that would help it meet its goal of becoming a top-tier specialty pharmaceuticals company.

"We wouldn't rule out any type of transaction," Matthew Harbaugh, Mallinckrodt chief financial officer, said in a conference call with investors Monday, April 7.

Mallinckrodt says its business is characterized by creating and selling difficult-to manufacture, complex and highly specialized drugs. It is focused on markets in the rheumatology, nephrology, pulmonology and other therapeutic spaces.

Mallinckrodt will remain domiciled in Ireland. It expects that Questcor business will gain an immediate benefit of about 10% decline in tax rate due to Ireland's significantly lower business taxes.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
QCOR $93.60 1.65%
FB $102.71 3.20%
GOOG $695.29 2.50%
TSLA $147.88 -0.25%
YHOO $27.56 2.80%


Chart of I:DJI
DOW 16,062.35 +47.97 0.30%
S&P 500 1,872.43 +20.22 1.09%
NASDAQ 4,344.6480 +75.8850 1.78%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs