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| Inomax DSIR Plus delivery system--Courtesy of Ikaria |
Pharma company Mallinckrodt ($MNK) will scoop up Ikaria, the maker of a drug-device combination product to help newborns suffering from respiratory failure breathe better. It just announced the acquisition of Ikaria from an investor group led by private equity firm Madison Dearborn Partners for $2.3 billion, saying the new addition will benefit from its hospital presence and familiarity with medication-technology pairings.
The deal is expected to close in Mallinckrodt's fiscal third quarter.
Ikaria sells Inomax inhaled nitric oxide, an associated delivery system for administering operator-determined concentrations and patient monitoring, as well as consumable accessories for the drug's breathing unit. Mallinckrodt says the delivery systems are compatible with 79 different ventilators used in hospitals' intensive care units.
Inomax is approved to treat hypoxic respiratory failure associated with pulmonary hypertension, or high blood pressure in the arteries of the lungs. Ikaria says HRF occurs when the cells in the body are unable to receive enough oxygen. The company is running a clinical trial to expand the indication to include other lung diseases. It is also investigating an intravenous drug candidate for the kidney disease Hepatorenal syndrome.
"We continue to move decisively in line with our strategic roadmap--building on key growth platforms and using our unique ability to manage complexity to unlock untapped additional value from diverse products and environments. With this expansion into respiratory neonatal critical care we expect to further broaden our touch points in the hospital market, and at the same time diversify our portfolio with durable assets that play vital roles in the treatment of vulnerable patient populations," Mallinckrodt CEO Mark Trudeau said in a statement.
The move represents the Covidien spinoff's boldest foray into device world--but not its first. Mallinckrodt already sells nuclear imaging agents and contrast media via its global medical imaging division. And last year the company announced a partnership with Medtronic ($MDT) to study intrathecal therapeutics for the treatment of chronic pain that would be delivered through the spinal cord by Medtronic's infusion pump.
Mallinckrodt is not the first pharma player to move into an adjacent device space to expand its presence in the hospital and enter new therapeutic markets. Pfizer ($PFE) will enter the infusion pump market with its purchase of Hospira ($HSP), and drug wholesaler Cardinal Health just announced the purchase of Cordis from Johnson & Johnson ($JNJ) for $1.6 billion, demonstrating the transformative effects of med tech merger mania.
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