Mallinckrodt Completes Sale of its Intrathecal Therapy Business to Piramal Enterprises Limited for A

Mallinckrodt has closed the sale of its Intrathecal Therapy business to Piramal Enterprises Limited's subsidiary in the U.K., Piramal Critical Care, for approximately $203 million, including fixed and contingent consideration. The company's Intrathecal Therapy business markets products for the treatment of spasticity via intrathecal drug delivery, including the key asset Gablofen^® (baclofen injection).

Mallinckrodt's divesture of this business is aligned with the company's ongoing focus on driving return on invested capital, and contributes to the strategic transformation of the company.

"This action is another example of the strategic evolution of our portfolio, and will free resources for investing in our growth platforms in autoimmune and rare diseases and hospital therapies," said Mark Trudeau, President and Chief Executive Officer of Mallinckrodt. "Our Intrathecal Therapy business is an excellent fit for Piramal Critical Care, and is the best solution to meet patient needs."

The approximately $203 million transaction will consist of $171 million of fixed consideration of which 10%, or $17 million, will be paid at closing, and an additional $154 million will be paid on the first anniversary of the close date. The remaining total consideration of up to $32 million is contingent, based on the gross profit of the Gablofen products in 2018 and 2019.

Gablofen, a product approved by the U.S. Food and Drug Administration (FDA) for use in management of severe spasticity of cerebral or spinal origin in adult and pediatric patients age 4 years and above, is the only FDA-approved baclofen in prefilled syringes and factory-sealed vials.