Mallinckrodt Acquires InfaCare Pharmaceutical

Mallinckrodt shares were down 1.6% pre-market Friday after the specialty pharmaceutical firm said it has agreed to acquire InfaCare Pharmaceutical, a privately held specialty pharmaceutical company focused on development and commercialization of proprietary pharmaceuticals for neonatal and pediatric patient populations.

Financial terms of the transaction include an upfront payment of $80 million, with additional payments of up to $345 million dependent on regulatory and sales milestones. Mallinckrodt said expects the acquisition to be dilutive to adjusted EPS by $0.15 to $0.20 for 2017, and modestly higher in 2018. InfaCare’s developmental product stannsoporfin, a heme oxygenase inhibitor, is under investigation for its potential to reduce the production of bilirubin, the elevation of which can contribute to serious consequences in infants.

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