Boston, MA 04\/07\/2014 (wallstreetpr) –\u00a0Ireland\u2019s Mallinckrodt has announced it his inline to complete the acquisition of Questcor Pharmaceuticals Inc. (NASDAQ:QCOR)<\/b>, in a stock and cash deal valued at $5.2 billion. Questcor is a biopharmaceutical company specialized in the development of treatments for serious medical conditions. Mallinckrodt on its part develops a wide range of specialty pharmaceuticals.<\/p>\n
Mallinckrodt investing in Specialty Pharmaceuticals<\/b><\/p>\n
\u00a0Mallinckrodt which is headquartered in Dublin is planning to pay cash and stock valued at $86.08 a share which represents 27% above Questcor closing price. The acquisitions is in line with Mallinckrodt CEO Mark Trudeau\u2019s strategy to invest more in specialty pharmaceutical business while reducing focus on medical imaging.<\/p>\n
The acquisitions comes at the back of Questcor Pharmaceuticals Inc. (NASDAQ:QCOR)\u2019s shares plunging by highs of 23% in February after reports questioned the quality of the company\u2019s autoimmune drug. Questcor shareholders will be offered $30 per share in cash, for each share held. Once the deal is finalized, Mallinckrodt PLC Shareholders will own 50.5% of the new entity with Questcor shareholder owning the remaining 49.5%<\/p>\n
Questcor Pharmaceuticals Inc. (NASDAQ:QCOR) current primary product is H.P Acthar Gel which is a specialty drug for the management of autoimmune and inflammatory conditions. The drug is currently approved in the U.S. Both companies board of directors approved the transactions awaiting customary closing conditions. The latest acquisition by Mallinckrodt comes at the back of it agreeing to buy Cadence Pharmaceuticals for $1.3 billion as part of its effort to become part of the 25% specialty drug manufacturers.<\/p>\n
Questcor Tax Rate to Drop by 10%<\/b><\/p>\n
\u00a0The combined company after the merger will be headed by Mallinckrodt president and CEO Mark Trudeau with Mallinckrodt board of directors being expanded by 3 members to accommodate a total of 12 directors. The three new board members positions will be filled by two directors from Questcor and Mr. Bailey. Mallinckrodt Chief Financial Officer expects Questcor tax rate to drop by 10% as a result of the acquisition. The deal is a demonstration of how companies are moving abroad to avoid the high tax rates in the U.S.<\/p>\n
\u00a0Once the acquisition transaction is complete, Questcor Pharmaceuticals Inc. (NASDAQ:QCOR) will operate its commercial operations as an independent entity within Mallinckrodt specialty pharmaceuticals and will report directly to the company\u2019s CEO Trudeau. The deal will be accretive to Mallinckrodt adjusted earnings per share for the year.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 04\/07\/2014 (wallstreetpr) –\u00a0Ireland\u2019s Mallinckrodt has announced it his inline to complete the acquisition of Questcor Pharmaceuticals Inc. (NASDAQ:QCOR), in a stock and cash […]<\/p>\n","protected":false},"author":32,"featured_media":4504,"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":[5903,5902],"stock_ticker":[],"class_list":["post-18823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","tag-nasdaqqcor","tag-questcor-pharmaceuticals-inc-nasdaqqcor","entry"],"acf":[],"yoast_head":"\n