Mallinckrodt said Monday it has agreed to sell its intrathecal therapy business to privately held Piramal Enterprises Limited’s subsidiary in the UK approximately $203 million. Intrathecal therapy refers to drugs injected into the spinal canal.
Mallinckrodt said its intrathecal therapy business markets products for the treatment of spasticity, and the key asset is Gablofen, a product approved by the U.S. Food and Drug Administration for use to manage severe spasticity of cerebral or spinal origin in adult and pediatric patients age 4 years and above.
The $203 million transaction will consist of $171 million of fixed consideration of which 10%, or $17 million, will be paid at closing, and an additional $154 million will be paid on the first anniversary of the close date. The remaining total consideration of up to $32 million is contingent based on the gross profit of the Gablofen products in 2018 and 2019.