Health and Science

Mallinckrodt buys immunotherapy maker Therakos for $1.33 billion

Dublin-based drugmaker Mallinckrodt said it would buy immunotherapy company Therakos in a deal valued at about $1.33 billion, its second major acquisition this year to strengthen its hospital offerings.

Therakos develops immune cell therapies delivered through extracorporeal photopheresis (ECP), a form of therapy used to treat symptoms associated with a common form of skin cancer in patients who may have exhausted other treatments.

Mallinckrodt, which is buying Therakos from investment firm The Gores Group, said on Monday it expects the acquisition to add at least 10 cents per share to adjusted profit in 2016, assuming the deal closes in late fiscal 2015.

Mallinckrodt Pharmaceuticals offices in St. Louis.
Whitney Curtis | AP

The company agreed in early March to buy privately held Ikaria, a maker of a respiratory drug and its delivery system, for $2.3 billion.

The deal allowed Mallinckrodt access to INOMAX, which Ikeria says is the only approved product to treat hypoxic respiratory failure in infants.

Like INOMAX, Therakos' therapeutic platform, including its latest-generation Therakos CELLEX Photopheresis System, is the world's only approved, fully integrated systems for administering autologous immune cell therapy through ECP, the companies said.

The systems, used in more than 25 countries, have delivered over one million photopheresis treatments.

Mallinckrodt reported a slower-than-expected rise in third-quarter sales, hurt by a stronger dollar and low sales in its specialty generics and medical imaging businesses.

The Gores Group had bought Therakos from Ortho-Clinical Diagnostics, a former subsidiary of Johnson & Johnson in 2012.

Shares of Mallinckrodt, which has entered into a debt financing for the deal, were unchanged in premarket trading on Monday.