Mallinckrodt  (MNK - Get Report) is selling its intrathecal therapy business to a Piramal Enterprises subsidiary for up to $203 million, which continues its efforts to divest noncore assets to focus on areas such as autoimmune and rare diseases and hospital therapies.

The deal, announced Monday, comes three days after Mallinckrodt completed the sale, first announced in August, of its nuclear imaging business for up to $690 million to CapVest Partners LLP-backed IBA Molecular Imaging.

The deal  also follows Mallinckrodt's agreement to pay a $100 million fine to settle federal charges that one of the company's subsidiaries carried out a 2013 acquisition in part to kill competition for a specialty drug used to treat seizures in infants and other serious medical conditions. The Federal Trade Commission charged that Questcor Pharmaceuticals, a company Mallinckrodt acquired in 2014, violated antitrust laws when it obtained rights to a specialty drug that threatened its monopoly in the U.S. market for adrenocorticotropic hormone (ACTH) drugs from Novartis (NVS - Get Report) .

The drug, Acthar, is used to treat infantile spasms, a rare seizure disorder afflicting infants, as well a drug of last resort used to treat other serious medical conditions, including nephrotic syndrome, flareups of multiple sclerosis and rheumatoid disorders.

The intrathecal therapy business markets products for the treatment of spasticity through intrathecal (spinal column) drug delivery. In the 12 months ended Sept. 30, the unit had revenue of $44.6 million.

Staines-upon-Thames, U.K.-based Mallinckrodt is selling the unit to Piramal Critical Care, a U.K. subsidiary of Mumbai-headquartered Piramal Enterprises. Terms of the deal include $171 million of fixed consideration, of which 10%, or $17 million, will be paid at the transaction's close, and $154 million will paid on the first anniversary of the completion date. Terms also include payment of up to $32 million based on financial performance of the assets over the next three years.

"Mallinckrodt is transforming its portfolio to become a top-performing specialty pharmaceutical company, systematically divesting noncore businesses to build upon our growth platforms in autoimmune and rare diseases and hospital therapies," said Mallinckrodt president and CEO Mark Trudeau in a statement.

"While net sales for our Intrathecal Therapy business have increased approximately 50% since 2012 and it has become significantly more profitable, the products have limited commercial synergy with other parts of our growing Specialty Brands segment. The sale of this business to Piramal is the best solution to meet patient needs and will free resources for us to invest in additional growth,"  Trudeau added.

The intrathecal therapy business' key asset is Gablofen (baclofen injection), which was approved by the Food and Drug Administration for use in management of severe spasticity of cerebral or spinal origin in patients age 4 years and up. It is the only FDA-approved baclofen in prefilled syringes and factory-sealed vials. In addition, Mallinckrodt has a higher Gablofen concentration in late-stage development. If that's approved, it would help address physicians' demand for more refill options, according to the announcement.

The transaction, which includes marketed intrathecal products as well as those in development, is expected to close within the first quarter.

For Piramal Critical Care, the deal comes on the heels of its acquisition in October of five anesthesia and pain management injectable products from Janssen Pharmaceutica NV for an upfront consideration of $155 million, plus a potential earnout component of up to $20 million.

The acquisition of the intrathecal therapy business marks Piramal Enterprises' seventh acquisition in the pharmaceuticals space in the last two years, noted Piramal Enterprises chairman Ajay Piramal in a news release.

"This transaction is a step further in our strategy to make investments, in both internal developments and acquisitions, to expand our presence in the global generic hospital drug market, which is greater than US $20 billion in size," Piramal said in a statement.

Besides the pharmaceutical sector, Piramal Enterprises has a presence in areas including information management and financial services. Piramal Enterprises is listed on both the Bombay Stock Exchange and National Stock Exchange in India.