Biopharmaceutical Firm Mallinckrodt Buys Drug-Device Maker Ikaria

Ireland-based biopharmaceutical company Mallinckrodt plc is expanding it’s medical technology profile with the purchase of Ikaria Inc., which is a privately held critical care company.

Mallinckrodt will acquire Ikaria from a group of investors led by Chigaco, Ill.-based Madison Dearborn Partners for approximately $2.3 billion.

The deal is expected to close in the second calendar quarter, Mallinckrodt’s third fiscal quarter. 

Ikaria makes therapies and delivery systems for critically ill infants in hospital neonatal intensive care unit settings. Approved by the U.S. Food and Drug Administration, Ikaria’s lead product, INOmax (inhaled nitric oxide), is a vasodilator which, in conjunction with ventilatory support and other appropriate agents, is indicated for newborns with hypoxic respiratory failure associated with clinical or echocardiographic evidence of pulmonary hypertension, where it improves oxygenation and reduces the need for extracorporeal membrane oxygenation.

Focused on critical care in areas of high unmet medical need, Ikaria is exploring additional potential applications for INOmax and INOmax delivery systems, and is also advancing other pipeline assets in rare disease.  

With this transaction, Mallinckrodt is expected to significantly strengthen its footprint in hospitals, extending its presence from its current base of diagnostic radiology and multimodal pain management in surgical specialties to include critical care respiratory therapies in neonatal intensive care units.

Individually approved and marketed together as a ‘drug-device’ combination, INOmax and INOmax delivery systems will benefit from Mallinckrodt’s larger hospital presence, regulatory expertise, long experience in complex drug and device manufacturing, and support of similar medication-technology pairings, according to officials from Mallinckrodt.

“This transaction demonstrates our ongoing commitment to transform Mallinckrodt into a leading, high-performing specialty biopharmaceutical company with a diverse and durable portfolio,” said Mark Trudeau, president and CEO of Mallinckrodt.  “We continue to move decisively in line with our strategic roadmap – building on key growth platforms and using our unique ability to manage complexity to unlock untapped additional value from diverse products and environments. With this expansion into respiratory neonatal critical care we expect to further broaden our touch points in the hospital market, and at the same time diversify our portfolio with durable assets that play vital roles in the treatment of vulnerable patient populations.” 

“At Ikaria our mission has been to address the high unmet needs of critical care medicine,” said Daniel Tasse, chairman and CEO of Ikaria. “We have always aimed to develop and deliver innovative therapeutics and interventions that meet the unique and significant needs of critically ill patients, and just as importantly, to be a valuable partner to clinicians and hospitals. We thank Madison Dearborn and our other investors for their partnership and believe Mallinckrodt is the natural owner of Ikaria and can expand further our mission of advancing critical care.”

Ikaria is based in Hampton, N.J.