Mallinckrodt and Endo merge to form US $7 billion pharmaceutical company

USA – Mallinckrodt Pharmaceuticals and Endo Inc., both emerging from recent bankruptcies linked to opioid litigation, have agreed to merge in a deal valued at US $6.7 billion.

This strategic move aims to bolster their positions in the pharmaceutical industry by combining resources and expertise.

The merger will result in a diversified portfolio that includes branded drugs, sterile injectables, and generic medications.

Notable products from Endo, such as the Aveed testosterone injection, and Mallinckrodt’s Acthar gel and Terlivaz therapy for kidney disease, will be part of the combined offerings. The new entity is projected to generate approximately US $3.6 billion in revenue by 2025.

Financially, Endo shareholders will receive US $80 million in cash and hold a 49.9% stake in the merged company, while Mallinckrodt shareholders will own the remaining 50.1%.

The combined company plans to list on the New York Stock Exchange, with Mallinckrodt’s CEO, Siggi Olafsson, slated to lead the organization.

Both companies have faced significant challenges due to their involvement in the U.S. opioid crisis.

Mallinckrodt paid US $700 million to settle lawsuits related to its manufacturing of Oxycodone, while Endo agreed to pay US $465 million to the U.S. government and US $450 million to state and municipal trusts, also pleading guilty to a misdemeanor over its marketing practices.

The merger is anticipated to close in the second half of 2025, subject to regulatory approvals and customary closing conditions.

The new company aims to focus on treating inflammatory and autoimmune diseases, as well as urology conditions, leveraging its combined expertise to better serve patients and healthcare providers.