Troubled Mallinckrodt and Endo to merge

Ireland-based Mallinckrodt Pharmaceuticals and Endo Inc (OTCQX: NDOI) have agreed to combine in a stock and cash deal worth $6.7 billion, after the pair emerged from bankruptcy processes linked to liabilities over the US opioid crisis.
Mallinckrodt investors will receive a 50.1 per cent share in the combined company, while Endo shareholders will receive $80 million in cash and a 49.9% shareholding, giving the new entity an enterprise value of about $6.7 billion.

Endo’s shares dipped 3% to $27.40 following the announcement, that came after rumors of the link-up emerged. Just a couple of days ago the company sold its Paladin business to Knight Therapeutics for around $99 million.

The companies project the combined 2025 revenue to be $3.6 billion. It is expected to generate at least $150 million of annual pre-tax run-rate operating synergies by Year 3, and around $75 million of pre-tax synergies in Year 1, driven by business function integration and R&D savings from economies of scale, among other areas.