Mallinckrodt to acquire InfraCare Phrmaceutical

STAINES-UPON-THAMES, United Kingdom — Mallnckrodt on Friday announced its planned acquisition of InfraCare Pharmaceutical, a company focused on developing treatments for neonatal and pediatric patient populations.

The deal, will see Mallinckrodt paying $80 million upfront, with additional payments of up to $345 million depending on regulatory and sales milestones. It also will bring to Mallinckrodt InfraCare’s developmental product stannsoporfin, which is under production to help reduce production of bilirubin in infant patients at risk of developing serious jaundice.

“Severe hyperbilirubinemia can result in serious complications in infants, including brain damage and, rarely, death," Mallinckrodt chief scientific officer and EVP Dr. Steven Romano said. "We look forward to bringing this much-needed treatment option to babies at greatest risk for the consequences of this condition."

Mallinckrodt estimates the market for severe jaundice patient treatments for term babies in key international countries is in the range of 150,000 to 275,000 patients. Currently infants treated for the condition contribute about $500 million to healthcare spending.

“We believe stannsoporfin has the potential to help thousands of infants whose severe jaundice is unresolved by current treatments," InfraCare president and CEO Dan Burns said. "We're also excited by the additional development capability and commercial reach that can be gained by becoming part of Mallinckrodt. Together I'm confident we can successfully bring this important treatment to market."