Mallinckrodt, the soon-to-be spun-out pharma business of Covidien, is buying a Minnesota company that is developing drugs to treat neurological disorders and severe chronic pain by delivering them to specific locations in the central nervous system.
The Hazelwood, Missouri unit of Covidien announced Monday that it is acquiring CNS Therapeutics’ outstanding capital stock for $100 million. Investors in the company include InterWest Partners and Thomas McNerney & Partners. The deal is expected to close in the fourth quarter.
Mallinckrodt, whose 2011 annual revenue was $2 billion, is expected to become a stand-alone company by mid-2013. The company is the largest supplier of opioid pain medications in the U.S. based on prescription volumes. CNS Therapeutics, founded in 2007, makes Gablofen to manage severe spasticity.
“This acquisition supports our strategy of leveraging our therapeutic expertise and our corecapabilities in manufacturing, regulatory and commercialization to serve patients,” said MarkTrudeau, president, pharmaceuticals, in a new release. “CNS Therapeutics’ …central nervous system and pain-management products indevelopment complement our pipeline and address an important need for patients.”
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