| 2018-01-08 07:46:43|
BAX, MNK 07:46 01/08 01/08/18
Baxter to acquire two hemostat, sealant products from Mallinckrodt
Baxter International (BAX) announced an agreement to acquire two hemostat and sealant products from Mallinckrodt (MNK): RECOTHROM Thrombin topical, the first and only stand-alone recombinant thrombin, and PREVELEAK Surgical Sealant, which is used in vascular reconstruction. The acquisition also includes PREVELEAK, a surgical sealant designed to seal suture holes formed during surgical repair of the circulatory system and to reinforce sutured connections between blood vessels. PREVELEAK augments Baxter's portfolio of complementary hemostats, sealants and tissue products used in cardiovascular and other surgeries, offering surgeons additional clinically differentiated products to address patients' varying needs. PREVELEAK is approved in the United States and European Union. Sales of the proposed acquired products totaled approximately $56M in the twelve months preceding September 29, 2017. Upon closing, the deal is expected to be modestly accretive to Baxter's 2018 adjusted earnings and increasingly accretive thereafter. Under the terms of the agreement, Baxter will acquire RECOTHROM and PREVELEAK for an upfront payment of approximately $153M and potential contingent payments in the future. The transaction is expected to close in the first half of 2018, subject to the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.