Mallinckrodt Buys Cadence Pharma for $1.3 Billion

A smallish acquisition to report Tuesday morning: Ireland-based specialty drug maker Mallinckrodt is buying Cadence Pharmaceuticals  (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. 

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

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