Just weeks after picking up regenerative medicine company Stratatech, Mallinckrodt ($MNK) is exiting the device arena and selling its nuclear imaging business to IBA Molecular for approximately $690 million.
While Mallinckrodt’s nuclear imaging unit has been part of the company for more than 40 years and driven profitability over the past few years, the company is offloading it to focus on building its portfolio in the “high-growth specialty pharma space,” said CEO Mark Trudeau in a statement. Just this week, Dublin-based Mallinckrodt announced it would drop $90 million on a new U.S. campus and more manufacturing for its specialty brands business.
The nuclear imaging business is a global supplier of the medical isotope Technetium-99m, which is used in the majority of all nuclear medicine procedures worldwide, according to the statement. It also offers diagnostic components for oncology, renal, lung ventilation and nuclear cardiology imaging. These include kits for the preparation of imaging agents and a gas for diagnostic inhalation studies. U.S. sales make up two-thirds of Mallinckrodt’s nuclear imaging revenues, according to the company.
The deal, which is subject to several closing conditions, consists of approximately $574 million up front, $39 million in long-term obligations, and $77 million in contingent considerations. The transaction will see IBA Molecular pick up a pair of manufacturing facilities in the U.S. and the Netherlands, as well as the more than 800 nuclear imaging employees in North America and Europe.
“IBAM's and Mallinckrodt's Nuclear Imaging business' complementary footprint and capabilities will substantially broaden our ability to serve patients globally,” said IBA Molecular CEO Renaud Dehareng in the statement. “We are very pleased to welcome our new colleagues to IBAM upon closing and look forward to working together in this next chapter of our company's development."
- here's the statement
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