Speciality pharmaceuticals firm Mallinckrodt has agreed to sell its Therakos business to investment firm CVC Capital Partners for $925m, subject to customary adjustments.
Therakos is a fully integrated extracorporeal photopheresis (ECP) delivery system designed for autologous immunomodulatory therapy.
The treatment is used to address skin symptoms of a specific type of cancer in individuals who have not responded to other treatments.
Approved for use in the US, Canada, Europe, Japan, Australia, and Latin America, it is the preferred platform for healthcare providers and patients treating a variety of immune-related diseases.
Mallinckrodt, based in Dublin, acquired the business in 2015 for $1.33bn.
The company now announced that it will use the proceeds from this deal with CVC to cut its debt by over 50%.
Mallinckrodt president and CEO Siggi Olafsson said: “Today’s announcement underscores our commitment to executing on our strategic priorities and creating value for our stakeholders.
“This transaction provides the Therakos business with an ideal partner to invest in its continued growth, and we look forward to closely working with CVC to transition Therakos for the benefit of patients, healthcare providers, partners and employees.”
CVC, with its expertise in healthcare and a global portfolio in pharma, med-tech, and healthcare services, plans to further invest in the research, development, and expansion of Therakos.
In addition, the investment firm will broaden Therakos’s indications and geographic reach.
As part of the agreement, key employees involved with Therakos will transition with the business, continuing to support the product and its stakeholders.
CVC healthcare team spokesperson Cathrin Petty and Phil Robinson said: “We see significant opportunities ahead to expand Therakos’ indications, enter new geographies and bring this innovative treatment to more patients around the world.
“We look forward to working closely with the talented Therakos team and adding this best-in-class ECP system with an unparalleled efficacy, safety and tolerability profile to our portfolio of healthcare businesses.”
The deal is anticipated to close in Q4 2024, pending regulatory approvals and other standard closing conditions.
Lazard is acting as Mallinckrodt’s financial advisor, while Wachtell, Lipton, Rosen & Katz is providing primary legal counsel.
UBS is advising CVC on financial matters, with Freshfields Bruckhaus Deringer as legal counsel.
