NEW YORK (TheStreet) -- Shares of Mallinckrodt (MNK) - Get Mallinckrodt Plc Report were gaining in early-morning trading on Wednesday after agreeing to sell its nuclear imaging business to radio pharmaceutical products maker IBA Molecular for roughly $690 million.
The transaction is expected to close in the first half of 2017, and is subject to regulatory approval from the U.S. Nuclear Regulatory Commission.
The business's workforce of more 800 employees and its two manufacturing plants will be transferred to IBA Molecular when the deal closes.
The agreement will expand Mallinckrodt's portfolio in the high-growth specialty pharmaceuticals space, CEO Mark Trudeau said in a statement.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Mallinckrodt's strengths such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, attractive valuation levels and good cash flow from operation outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: MNK
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.