NYSE-listed pharmaceuticals company Mallinckrodt has agreed to acquire Nasdaq-listed Cadence Pharmaceuticals for $1.3bn.
The company previously secured venture capital investment from firms including Domain Associates, Frazier Healthcare Ventures, Wellington Management, Versant Ventures, Bay City Capital and New Enterprise Associates.
Most recently the company snared a $86.6m private placement in 2009, following its 2007 IPO. Investors included T. Rowe Price Associates.
The offer is for $14 per share in cash, a 32 per cent premium to the trailing 30-trading-day volume weighted average price of $10.62 per share for the company. Mallinckrodt has entered into debt financing commitments with Deutsche Bank Securities for a senior secured term loan facility.
Cadence Pharmaceuticals a biopharmaceutical company focused on acquiring, in-licensing, developing and commercialising proprietary products principally for use in the hospital setting.
The company expects net revenues of $110.5m for its OFIRMEV product for 2013. It is on formulary in more than 2,350 US hospitals and has been used to treat an estimated 6 to 7 million patients since its launch in January 2011.
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