Mallinckrodt bolsters business with $1.2bn buyout

pharmafile | January 3, 2018 | News story | Research and Development, Sales and Marketing Mallinckrodt, drugs, pharma, pharmaceutical, sucampo 

Mallinckrodt has endured a tough 2017, with its share price falling by half over the course of the year. This has largely been due to worries over the company’s pipeline, and questions over its ability to manage slowing sales of its main treatment, Acthar.

The company has made move to assuage such fears entering into 2018, with a $1.2 billion acquisition of Sucampo Pharmaceuticals that will see it gain access to the latter company’s constipation drug, Amitiza.

In addition for Mallinckrodt, it will also gain access to several rare disease drug candidates contained in Sucampo’s pipeline.

Sucampo has a treatment in Phase 3 trials for Niemann-Pick Type C (NPC), a drug candidate that the FDA granted orphan drug designation and a breakthrough designation. If approved, Mallinckrodt expects peak sales to be greater than $150 million.

It also has CPP-1X currently undergoing Phase 3 development, a treatment for Familial Adenomatous Polyposis (FAP). Again, dependent upon approval, it could generate net sales of greater than $300 million.

“Both NPC and FAP are devastating conditions associated with substantial morbidity and mortality, and effective therapies are needed,” said Steven Romano, Chief Scientific Officer and Executive Vice President of Mallinckrodt. “In addition to the current patient benefits provided by Amitiza, we look forward to bringing VTS-270 and CPP-1X/sulindac to patients with critical unmet medical needs.”

Amitiza is currently under review by the FDA for an additional indication in children between the ages of 6 and 17 for paediatric functional constipation, with a decision expected later this month.

Beyond this, Mallinckrodt will be hoping that the acquisition will stoke stronger investor confidence in the company that has gained a stronger reputation in price hiking than in developing drugs itself.

A business practice that led the company to leave PhRMA mid-way through 2017, as the lobby group looked to distance itself from such practices and focus on including companies focused on R&D activities.

Ben Hargreaves

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