Mallinckrodt To Spin-Off Specialty Generics Business To Shareholders

(RTTNews) - Mallinckrodt plc (MNK) announced plans to spin off a new company consisting of its Specialty Generics/Active Pharmaceutical Ingredients (Specialty Generics) business and AMITIZA (lubiprostone) to company shareholders, subject to final Board approval. The planned separation is expected to be executed through a pro-rata distribution of common stock to shareholders.

The company said the separation is expected to create two independent, appropriately capitalized, publicly traded companies - one focused on specialty pharmaceutical brands, the other concentrated primarily in niche specialty generic products and API manufacturing. It is anticipated that the spun-off company will be listed on the NYSE and will assume the Mallinckrodt name and ticker symbol.

Matthew Harbaugh, currently Mallinckrodt's CFO, is expected to become President and CEO of the new company upon completion of the spin off. Harbaugh will step down as Mallinckrodt's CFO, effective immediately, to focus exclusively on preparing for separation, but will continue to serve as President of the Specialty Generics business. George Kegler, Mallinckrodt's Vice President of Finance, will serve as interim CFO.

Mark Trudeau, current President and CEO, will lead the The 'remaining' independent Specialty Pharmaceutical Brands company.