Boston, MA 02/11/2014 (wallstreetpr) – An agreement has been reached between Cadence Pharmaceuticals, Inc. (NASDAQ:CADX) and by Mallinckrodt plc. That will see Mallinckrodt plc. Acquiring Cadence pharmaceutical for a total amount of $1.3 billion or per share price of $14 on a fully diluted basis.This agreement represents a 32% premium to the trailing 30 day trading volume weighted average price of $10.62 for cadence pharmaceutical.
The agreement is only awaiting the approval of customary terms and conditions with the deal expected to come to full completion in mid or late march. Mallinckrodt plc. Is full of optimism that the new acquisition will have a huge impact on its full year financialresults.
Cadence Pharmaceuticals, Inc. (NASDAQ:CADX) which is a biopharmaceutical company focuses on products that are mostly used in hospital settings. The company flagship product Acetaminophen is mostly used for the treatment of mild to moderate pain.
Mallinckrodt plc. Intends to use the acquisition of cadence acquisition on its effort of accelerating its mark in the global pharmaceutical industry, this is according to Mallinckrodt plc. CEO Mark Trudeau who was quoted as saying “The acquisition of Cadence Pharmaceuticals is consistent with our goal of becoming a leading global specialty pharmaceuticals company.
Mallinckrodt plc. Will be banking on the strong relationship that Cadence Pharmaceutical has established overtime with its customer s in the hospital channel as the basis for further growth. The challenge of expanding the platform will be greater but Mallinckrodt plc. Is of the opinion it will be earn positives out of the deal.
With the announcement of the agreement Cadence Pharmaceuticals, Inc. (NASDAQ:CADX) Chief executive Officer ted Schroeder was quoted as saying “We are very proud of what our employees have accomplished, and in particular the very strong growth we have achieved with OFIRMEV”. The chief executive officer was quick to point out that the relationship that they have built with customers over time has contributed massively to the growth of Cadence Pharmaceutical which has led to strong year over year growth. Cadence CEO is of the opinion Mallinckrodtplc. Is the natural fit partner, fit to provide the much needed resources and expertise for ensuring OFIRMEV reaches as many patients as possible
The transaction is expected to provide Cadence Pharmaceuticals, Inc. (NASDAQ:CADX) shareholders a good return on their invested funds.
