Merger of Mallinckrodt and Endo to Form a Globally Acknowledged, Enlarged, and Varied Pharmaceutical Titan
Mallinckrodt and Endo Merger: Spin-off of Par Health on Track
The merger of Mallinckrodt plc and Endo, Inc., which created a global, scaled, diversified therapeutics leader, is moving forward as planned. The spin-off of Par Health, the combined generics and sterile injectables business, is on track and anticipated to be completed during the fourth quarter of 2025.
Par Health, which includes generic drugs, sterile injectables, and active pharmaceutical ingredients, is expected to operate as an independent publicly listed company. The company is projected to generate approximately $1.72 billion to $1.75 billion in net sales[1][3][4].
The spin-off aims to allow the branded therapeutics business (remaining with the combined entity of Mallinckrodt and Endo) to focus on high-margin innovation, while Par Health will operate independently, concentrating on generics and sterile injectables markets. This strategy is designed to unlock shareholder value and enable each entity to tailor their strategies optimally to their core markets[2].
Operationally, Par Health continues to function as a fully owned business within the merged company until the completion of the spin-off. The separation is subject to Mallinckrodt’s Board approval and other customary conditions, with financing secured to support this transition[4].
The spin-off is anticipated to enhance financial flexibility and growth prospects for both the branded therapeutics business and Par Health as a standalone generics player with a strong presence, notably in controlled substances franchises.
Mallinckrodt plc, a leading provider of life-enhancing therapeutics with a focus on autoimmune and rare diseases, consists of multiple wholly owned subsidiaries operating in two businesses: Brands and Par Health. The Brands business focuses on various therapeutic areas such as endocrinology, gastroenterology, nephrology, neurology, pulmonology, ophthalmology, orthopedics, rheumatology, and urology.
The combined company's Board of Directors has nine directors, four from Mallinckrodt's board prior to the merger, four from Endo's board prior to the merger, and one jointly selected new director. Siggi Olafsson serves as the President and Chief Executive Officer of the combined company.
Investors can access time-critical information on the Investor Relations page of Mallinckrodt's website. Mallinckrodt's contacts for media are Joele Frank, Wilkinson Brimmer Katcher, while investors can contact Bryan Reasons, Executive Vice President and Chief Financial Officer.
It is important to note that Mallinckrodt's press release contains forward-looking statements with risks and uncertainties related to the company's business, the merger with Endo, and other factors. The Registration Statement on Form S-4 filed with the SEC in connection with the business combination transaction describes additional risks in connection with the transaction.
Under the terms of the agreement, Endo shareholders received a total of $100 million in cash and own 49.9% of Mallinckrodt on a pro forma basis. A subsidiary of Mallinckrodt incurred a $1.35 billion secured credit facility to finance the transaction and transaction costs or for general corporate purposes.
The combined company is expected to generate at least $150 million of annual pre-tax run-rate operating synergies by Year 3. The branded therapeutics company is expected to be listed on the New York Stock Exchange (NYSE) following the spin-off.
[1]: Source 1 [2]: Source 2 [3]: Source 3 [4]: Source 4
- The spin-off of Par Health, a business focusing on generics and sterile injectables, is projected to improve financial flexibility and growth prospects for both the branded therapeutics business and as a standalone entity, given its strong presence in controlled substances franchises.
- Mallinckrodt plc, which has a focus on autoimmune and rare diseases, consists of multiple wholly owned subsidiaries operating in two businesses: Brands and Par Health, the latter of which includes generic drugs, sterile injectables, and active pharmaceutical ingredients.
- Operationally, Par Health continues to function as a fully owned business within the merged company until the completion of the spin-off, which is subject to various conditions, including Mallinckrodt’s Board approval and financing secured to support this transition.
- As part of its strategy to unlock shareholder value, the spin-off aims to allow the branded therapeutics business to focus on high-margin innovation, while Par Health will operate independently and concentrate on generics and sterile injectables markets, serving diverse therapeutic areas such as endocrinology, gastroenterology, nephrology, and others.
- Infrastructure costs may be reduced through the use of cloud solutions, as technology advancements and digitalization can lead to improved efficiency and performance in the healthcare, science, finance, and business sectors, contributing to overall compliance and health-and-wellness outcomes.
