Mallinckrodt To Buy InfaCare - Quick Facts

(RTTNews) - Mallinckrodt plc (MNK) and InfaCare Pharmaceutical Corporation announced they have entered into an agreement under which Mallinckrodt will acquire InfaCare, a privately held specialty pharmaceutical company focused on development and commercialization of proprietary pharmaceuticals for neonatal and pediatric patient populations. InfaCare is headquartered in Trevose, Penn. Financial terms of the deal include an upfront payment of $80 million, with additional payments of up to $345 million dependent on regulatory and sales milestones.

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. In December 2016 the FDA granted stannsoporfin its Fast Track designation. Fast Track status allows for a "rolling" NDA data submission that has recently begun, and approval is anticipated in the first half of 2018.

Mallinckrodt expects the acquisition to be dilutive to adjusted earnings per share by $0.15 to $0.20 for 2017 and modestly higher in 2018.