Pharma Giants Mallinckrodt and Endo to Merge in Multi-Billion-Dollar Deal

Drugmakers Mallinckrodt and Endo have announced a merger valued at approximately $6.7 billion. The deal, expected to be finalized in the second half of 2025, aims to bolster their portfolio of branded medications, according to Reuters.

Under the terms of the agreement, Endo shareholders will receive $80 million in cash and will hold a 49.9% stake in the newly formed entity, while Mallinckrodt shareholders will own the remaining portion. The combined company is projected to generate $3.6 billion in revenue in 2025, per Reuters.

This merger will integrate the companies’ branded drug businesses, including Endo’s testosterone injection Aveed and Mallinckrodt’s Acthar Gel, a treatment for autoimmune conditions, as well as the kidney disease therapy Terlivaz. According to Reuters, Mallinckrodt CEO Siggi Olafsson, who is set to lead the new entity, emphasized that the combination will create a “larger and more diversified entity with the scale and resources needed to unlock the full potential of both companies.”

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Both companies share a history of financial struggles and legal challenges linked to opioid litigation. Dublin-based Mallinckrodt has declared bankruptcy twice, first in 2020 due to a heavy debt load and legal disputes over alleged deceptive opioid marketing practices, and again in 2023 following declining sales of key branded drugs such as Acthar Gel. As part of its most recent restructuring, the company successfully reduced its opioid settlement obligations by $1 billion, Reuters reported.

Endo also faced financial difficulties, filing for bankruptcy in 2022 before completing its restructuring in 2023. The merger will unite both firms’ expertise in developing and commercializing complex, highly regulated pharmaceutical products while reinforcing their compliance-focused operations, according to a joint statement released Thursday.

Upon completion of the transaction, Endo will operate as a wholly owned subsidiary of Mallinckrodt, and the new company will be publicly traded on the New York Stock Exchange.

Source: Reuters