Dublin-based drugmaker Mallinckrodt Plc (MNK.N) said it would buy immunotherapy company Therakos Inc in a deal valued at about $1.33 billion, its second major acquisition this year aimed at strengthening its hospital offerings.
Therakos’s flagship device delivers extracorporeal photopheresis (ECP), a form of therapy typically used to treat symptoms associated with a common form of skin cancer in patients who have been unresponsive to other treatments.
The therapeutic platform, including the latest-generation CELLEX Photopheresis System, is the world’s only approved, fully integrated systems for administering autologous immune cell therapy through ECP, the companies said.
Mallinckrodt’s purchase of Therakos from investment firm The Gores Group comes after it agreed in early March to buy privately held Ikaria Inc, a maker of a respiratory drug and its delivery system, for $2.3 billion.
The deal allowed Mallinckrodt access to INOMAX, which Ikeria says is the only approved product to treat hypoxic respiratory failure in infants.
Mallinckrodt shares were little changed at $100.56 in early trading on Monday.
NEW DEAL, OLD FORMULA
The Therakos acquisition fits “hand-in-glove” with the INOMAX buy, Mallinckrodt executives noted on a conference call with analysts.
They said Mallinckrodt intends to tap medical establishments already using INOMAX to spur demand for Therakos’ devices, which they estimated could potentially rake in $500 million or more annually.
Therakos’s device is used in more than 25 countries but Mallinckrodt said it would first focus on selling more devices in the United States, where it is only approved for the skin cancer indication.
Outside the United States, the device is also used to treat patients with Graft Versus Host disease, Crohn’s disease, among others, and for solid organ transplants.
Mallinckrodt reported a slower-than-expected rise in third-quarter sales, hurt by a stronger dollar and low sales in its specialty generics and medical imaging businesses.
The Gores Group had bought Therakos from Ortho-Clinical Diagnostics Inc, a former subsidiary of Johnson & Johnson (JNJ.N) in 2012.
Mallinckrodt entered into a debt financing for the acquisition, which it expects will add at least 10 cents per share to adjusted profit in 2016, assuming the deal closes in late fiscal 2015.