Sucampo Sells to Mallinckrodt for $1.2 Billion

San Diego – December 27, 2017 – Cooley advised global biopharmaceutical company Sucampo on its acquisition by Mallinckrodt in an all-cash transaction valued at $1.2 billion. The transaction, expected to close in Q1 2018, will allow for the continued production of Sucampo’s leading global product for treating constipation, Amitiza, and also fuel the development of two phase 3 pharmaceuticals to treat rare diseases Niemann-Pick Type C (NPC) and Familial Adenomatous Polyposis (FAP). Barbara Borden, partner and co-chair of Cooley’s M&A practice, and partner Christian Plaza, led the team advising Sucampo on its sale.  

Sun Acquisition, a subsidiary of Mallinckrodt, will commence the cash tender offer to purchase all outstanding shares of Sucampo’s common stock for $18 per share. The sale is expected to be funded through borrowings under Mallinckrodt’s existing revolving credit facility, a new secured term loan facility and/or cash onhand. Sucampo stockholders holding approximately 32% of the outstanding Sucampo shares have entered into a tender and support agreement for the transaction. 

“We believe that this transaction with Mallinckrodt represents significant value for shareholders," said Peter Greenleaf, chairman and CEO of Sucampo, in a news release. "With the addition of its significant resources and expertise, we believe Mallinckrodt is a natural partner to accelerate the development of our rare disease assets in NPC and FAP, and to continue to provide Amitiza for patients suffering from constipation-related disorders."

Sucampo, which trades on the Nasdaq Global Market under the symbol “SCMP,” is a biopharmaceutical company focused on the development and commercialization of highly specialized medicines. Mallinckrodt, which trades on the New York Stock Exchange under the symbol “MNK,” develops, manufactures, markets and distributes specialty pharmaceutical products and therapies. 

This past April, Cooley advised Sucampo on its $200 million acquisition of rare disease biotech firm Vtesse. 

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