Mallinckrodt PLC (NYSE:MNK) will sell its certain hemostasis products to Baxter International Inc (NYSE:BAX) under a recent agreement for around $185 million. The leading specialty pharmaceutical company has received an upfront payment of $153 million from Baxter. The upfront payment will be inclusive of existing inventory and the remainder will help in fulfilling the potential future milestones.
Baxter is a renowned name in the global medical products market and is dedicated to providing advanced surgical innovations and multiple products as well as devices used in the surgical suite. The company under the agreement will be liable to pay for other expenses including contingent liabilities associated with PREVELEAK®, one of the hemostasis products from Mallinckrodt.
Apart from PREVELEAK® Surgical Sealant, the transaction also includes another product, RECOTHROM® Thrombin topical (Recombinant). Both these products are used in the surgical suite to control bleeding. According to a report, the net sales for the Mallinkrodt’s unit including Preveleak and Recothrom were $56.2 million during the month before September 29, 2017.
Reports suggest that Baxter has bought these products to broaden and complement its current portfolio of sealants and hemostats. With these new additions, Baxter will now be able to offer additional products to the surgeons interesting in addressing varying needs of their patients.
Mallinckrodt Gearing Up To Become Top- Performing Company
According to the President and Chief Executive Officer of Mallinckrodt, Mark Trudeau, the company wants to transform itself to become one of the top-performing specialty pharmaceutical companies in the world which is why they are focusing more on innovative therapies and medicines like StragaGraft and terlipressin.
The company recently also acquired several products including xenon gas, stannsoporfin, and OCR-002. The potential close of VTS-270, CPP-1X and Sucampo acquisition is expected to make a real difference in the number of patient populations whose medical needs have not been met. Trudeau said that the company has decided to emphasize on developing a portfolio for treating seriously ill adults and infants which is why the hemostasis products have become less strategic for them.