Mallinckrodt to acquire Sucampo Pharmaceuticals in $1.2bn deal

In a strategic move to broaden its pharmaceutical offerings, UK-based Mallinckrodt has announced the acquisition of Sucampo Pharmaceuticals, including its commercial and developmental assets, for approximately $1.2 billion. This acquisition also involves the assumption of $360 million of Sucampo’s debt, signaling a significant investment by Mallinckrodt into expanding its specialty pharmaceutical and rare disease sectors.

Key Assets and Treatments Involved in the Acquisition

One of the major assets included in the deal is Amitiza (lubiprostone), a well-established drug approved in the US for treating three types of constipation disorders. Another notable commercial product is Rescula (unoprostone isopropyl ophthalmic solution) 0.15%, which is marketed in Japan for treating ocular hypertension and open-angle glaucoma.

Additionally, the acquisition encompasses developmental assets like VTS-270, a phase 3 candidate for treating Niemann-Pick Type C, a neurodegenerative disease, and CPP-1X/sulindac, also in phase 3, designed for treating Familial Adenomatous Polyposis (FAP)—an inherited disorder characterized by cancers of the colon and rectum. Sucampo has been developing CPP-1X/sulindac in collaboration with Cancer Prevention Pharmaceuticals.

Executives’ Perspectives on the Deal

Mark Trudeau, CEO and President of Mallinckrodt, expressed his vision for the acquisition, stating, “Mallinckrodt’s acquisition of Sucampo is the latest milestone towards our vision of becoming an innovation-driven specialty pharmaceutical growth company focused on improving outcomes for patients with severe and critical conditions. The acquisition brings near-term net sales and earnings accretion through Amitiza and bolsters our pipeline in rare diseases with VTS-270 and CPP-1X/sulindac.”

Peter Greenleaf, Chairman and CEO of Sucampo, also commented on the acquisition’s benefits: “We believe that this transaction with Mallinckrodt represents significant value for shareholders. With the addition of its significant resources and expertise, we believe Mallinckrodt is a natural partner to accelerate the development of our rare disease assets in NPC and FAP, and to continue to provide Amitiza for patients suffering from constipation-related disorders.”

Approval and Future Steps

The acquisition has been approved by the boards of directors of both companies and is now subject to customary closing conditions, including the expiration of the applicable waiting period and the approval of Sucampo’s shareholders. Both companies anticipate a smooth transition with beneficial outcomes for stakeholders and patients alike.

This acquisition not only strengthens Mallinckrodt’s position in the specialty pharmaceuticals and rare diseases market but also promises to enhance the development and reach of critical treatments for severe health conditions. It underscores the dynamic nature of the pharmaceutical industry and the continuous drive towards innovation and expansion.