Boston, MA 02\/11\/2014 (wallstreetpr) –\u00a0Cadence Pharmaceuticals, Inc. (NASDAQ:CADX)<\/b> is being acquired by Mallinckrodt for an estimated cost of $1.21 billion. This move will help Mallinckrodt to strengthen its specialty drugs business, thus boosting its bottom line in the coming years, starting this year.<\/p>\n
That the two health care product companies are seeking to join forces is testimony to the growing trend in the industry where two or three is always better than one. That is, coming together to take advantage of market opportunities or ward off challenges to their profitability.<\/p>\n
This move and trend was hailed by Mallinckrodt Chief Executive Officer Mark Trudeau who said the acquisition of CADX is consisted with their goal of becoming not just a global player, but global leader in specialty pharmaceutical.<\/p>\n
Cadence Pharmaceuticals, Inc. (NASDAQ:CADX)<\/b> is based in San Diego and its main focus is on the commercialization of a variety of products used in hospitals. The company manufactures acetaminophen drug version called Ofirmev which is an injectable. The Ofirmev features Tylenol as an active ingredient and it has been used in the treatment of more than 6 million patients. The drug was launched in January 2011.<\/p>\n
The shares of Cadence Pharmaceuticals, Inc. (NASDAQ:CADX)<\/b> surged more than 27 percent in the premarket trading Tuesday following the acquisition news.<\/p>\n
The transaction<\/b><\/p>\n
To acquire Cadence Pharmaceuticals, Inc. (NASDAQ:CADX)<\/b>, Mallinckrodt will pay $14 per share, or 27 percent above the Monday closing price of $11.07. With all factors considered, the deal could hit $1.3 billion mark.<\/p>\n
The expectation of Mallinckrodt executives is that addition of CADX to the company\u2019s portfolio will significantly boost adjusted earnings per share starting 2014 into the future.\u00a0 That being said, the deal is obviously in the best interest of shareholders of Mallinckrodt. Even shareholders of CADX have their interest better taken care of in that they will get a premium price for the stock they hold.<\/b><\/p>\n
Deal approval<\/b><\/p>\n
At the time of this writing, boards of both companies \u2013 Mallinckrodt and Cadence Pharmaceuticals, Inc. (NASDAQ:CADX) \u2013 had already approved of the acquisition.<\/p>\n
This transaction is expected to close in March whereby Cadence Pharmaceuticals, Inc. (NASDAQ:CADX) <\/b>will become a subsidiary of Mallinckrodt.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 02\/11\/2014 (wallstreetpr) –\u00a0Cadence Pharmaceuticals, Inc. (NASDAQ:CADX) is being acquired by Mallinckrodt for an estimated cost of $1.21 billion. This move will help Mallinckrodt […]<\/p>\n","protected":false},"author":32,"featured_media":15114,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[264],"tags":[1979,1980],"stock_ticker":[],"class_list":["post-15113","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","tag-cadence-pharmaceuticals-inc-nasdaqcadx","tag-nasdaqcadx","entry"],"acf":[],"yoast_head":"\n