July 14--Updated at 12:50 p.m. with stock prices
Mallinckrodt is seeking shareholder approval to complete its previously announced $5.6 billion acquisition of Anaheim, Calif.-based Questcor Pharmaceuticals, according to a U.S. Securities and Exchange Commission filing Monday.
Both companies will hold separate shareholder meetings on Aug. 14 to gain approval for the merger agreement, according to the filing.
If approved by shareholders, the terms of the deal state Questcor shareholders will receive $30 in cash per share and 0.897 Mallinckrodt share in exchange for each Questcor share, as previously disclosed in April.
When the deal closes, Questcor shareholders will have a 49.5 percent stake in the company, while Mallinckrodt shareholders will own 50.5 percent of the combined company. The deal is expected to close in August, according to the filing.
Nearly all of Questcor's revenue is derived from the sale of its specialty drug, Acthar, which is used to treat a variety of conditions including lupus, rheumatoid arthritis, multiple sclerosis and infantile spasms. Acthar generated $761.3 million in net sales for Questcor for the year ended Dec. 31, 2013. Questcor reported total net sales of $799 million for the 2013 fiscal year.
This will be Mallinckrodt's second acquisition this year.
In March, Mallinckrodt completed its $1.4 billion acquisition of San Diego, Calif.-based Cadence Pharmaceuticals.
Hazelwood-based Mallinckrodt, led by CEO Mark Trudeau, reported net sales of $2.2 billion for 2013.
As of around 12:30 p.m., Mallinckrodt shares were trading at $77.77, up $2.67, or 3.6 percent, while Questcor shares were at $96.68, up $3.72, or 4 percent.
Samantha Liss is a business reporter at the Post-Dispatch. Follow her on Twitter @samanthann and the Business section @postdispatchbiz.
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