Mallinckrodt In Deal To Sell Therakos Business To CVC Capital For $925 Mln

(RTTNews) - Mallinckrodt plc, a specialty pharmaceutical company, announced Monday its agreement to sell Therakos business to investment firm CVC Capital Partners' Fund IX for $925 million, subject to customary adjustments.

Therakos is a fully integrated extracorporeal photopheresis or ECP delivery system for autologous immunomodulatory therapy, with approvals for use in the U.S., Canada, Europe, Japan, Australia and Latin America. It is the platform-of-choice among healthcare providers and patients to treat a range of immune-related diseases.

Mallinckrodt intends to use net proceeds to reduce its net debt by more than 50%. The transaction is expected to close in the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions.

Under the deal terms, key employees who work on Therakos will transition with the business and continue supporting the product.

Following the purchase, CVC intends to make additional investments in the continued research, development, indication expansion and geographic expansion of Therakos.

CVC's Cathrin Petty and Phil Robinson said, "We see significant opportunities ahead to expand Therakos' indications, enter new geographies and bring this innovative treatment to more patients around the world."

In the deal, Lazard is serving as Mallinckrodt's financial advisor, and UBS is serving as CVC's financial advisor.