Covidien spinout Mallinckrodt closes $690m sale of nuclear imaging biz

Covidien spinout Mallinckrodt plc (NYSE:MNK) said today that it closed the $690 million sale of its nuclear imaging business to IBA Molecular. Mallinckrodt’s nuclear imaging business includes 2 manufacturing facilities and more than 800 employees.

The $690 million deal, which was announced in August last year, consists of Mallinckrodt’s portfolio of diagnostic imaging products, including medical isotope molybdenum-99, the parent isotope to technetium 99m which is used in nearly 80% of all nuclear medicine procedures around the world.

“The divestiture of our nuclear imaging business is another important step toward the evolution of our portfolio,” Mallinckrodt president & CEO Mark Trudeau said in prepared remarks. “Our Nuclear Imaging business is an excellent strategic fit for the IBAM organization and we believe the expanded global reach of the combined business will enable IBAM to substantially increase its ability to meet the needs of patients around the world. With this transaction, we are pleased to welcome IBAM to the St. Louis area.”

IBA Molecular said it is working on developing a new name and brand to be rolled out in the coming months, but in the meantime the 2 groups will operate as IBA Molecular and Mallinckrodt Nuclear Imaging.

“We have created a new world-class nuclear imaging business. We have over 1,500 skilled employees across four continents, an unrivalled global manufacturing footprint comprising 21 leading-edge production facilities, a commercial presence in over 60 countries serving more than 6,000 customers and very complementary product portfolios and technical capabilities,” IBAM CEO Renaud Dehareng added. “Cumulatively, we have over 100 years of experience in nuclear medicine. All of this sets us apart and will allow us to deliver superior, sharply focused service to our customers reliably every day.”

In August last year, Mallinckrodt acquired Stratech and its artificial skin graft technology for an undisclosed amount. The deal also included Stratech’s development program for genetically enhanced skin, according to the company.

Last month, shares in stem cell company Mesoblast Ltd (ASX:MSB) rose 7% to A$1.51 after it said that it entered into an equity purchase agreement with Mallinckrodt Pharmaceuticals. Mallinckrodt plans to buy 20.04 million, or nearly 5%, of Mesoblast’s ordinary shares for A$1.48 apiece.

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