Boston, MA 08/19/2014 (wallstreetpr) –According to recent reports, Mallinckrodt PLC (NYSE:MNK) has decided to acquire Questcor Pharmaceuticals Inc (NASDAQ:QCOR). The deal has been valued at approximate $5.8 billion. The shares of MNK surged as soon as this news came out.
MNK To Join S&P 500 Club:
The shares of the company inclined by 1.1% after it announced that the acquisition deal with QCOR had been closed. Other than inclination in share prices, Mallinckrodt PLC (NYSE:MNK) also managed to find a place among S&P 500 companies. Both the companies i.e. MNK and Questcor Pharmaceuticals Inc (NASDAQ:QCOR) executed the acquisition deal after getting the approval of shareholders of both the companies.
What’s in there for shareholders?
As per the terms of this deal, the shareholders of Questcor Pharmaceuticals Inc (NASDAQ:QCOR) will receive 0.897 Mallinckrodt shares for each share of Questcor common stock and $30.00 per share in cash. According to experts’ opinion, the acquisition transaction will accretive to Mallinckrodt PLC (NYSE:MNK)’s bottom line immediately in fiscal 2014 while it will be accretive significantly in next year i.e. fiscal 2015.
The EPS guidance of MNK of $4.00 to $4.30 which was provided earlier this month along with the financial results of the previous quarter would not change after this deal. It will be excluded from the impacts of the acquisition deal of Questcor Pharmaceuticals Inc (NASDAQ:QCOR). Although MNK will surely include the QCOR deal at the time of EPS guidelines for fiscal 2015 announcement. According to reports, it will be announced in the month of October.
Most of the market experts think that the premium product of MNK i.e. H.P. Acthar Gel will be a huge add-on for the portfolio of Questcor Pharmaceuticals Inc (NASDAQ:QCOR), which includes Exalgo, Ofirmev and Xartemis XR. The last year’s revenues of H.P. Acthar Gel were $761.3 million (49.6% more than the immediate previous year). After putting up continuous strong performance for several months, Mallinckrodt PLC (NYSE:MNK) has got the Zacks Rank #1 i.e. strong buy.
