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Mallinckrodt to acquire Cadence

February 12, 2014 1:58 AM UTC

Specialty pharma Mallinckrodt plc (NYSE:MNK) gained $6.88 (12%) to $66.19 on Tuesday after announcing it will acquire Cadence Pharmaceuticals Inc. (NASDAQ:CADX) for $14 per share in cash, or about $1.3 billion on a fully diluted basis. The price is a 26% premium to Cadence's close of $11.07 on Monday, before the deal was announced.

Last month, Cadence reported preliminary 2013 net revenues of $110.5 million for IV Ofirmev acetaminophen injection -- its sole marketed product -- and said it expected the pain and fever drug to have 2014 net revenues of $173-$177 million. Cadence has U.S. and Canadian rights to Ofirmev from Bristol-Myers Squibb Co. (NYSE:BMY). ...