Pharma Companies Mallinckrodt, Endo in Talks to Merge

Pharmaceuticals companies Mallinckrodt Pharmaceuticals and Endo International are reportedly in discussions about a potential merger. The deal, which could be valued at around $7 billion, would result in each company owning roughly 50% of the combined entity. The merged company is expected to be listed on the New York Stock Exchange.

Both companies have faced significant legal challenges in recent years due to their involvement in the U.S. opioid epidemic. Mallinckrodt emerged from its second bankruptcy in November 2023, while Endo returned from bankruptcy last year.

The merger could potentially help them navigate these challenges more effectively.

Notably, both Mallinckrodt and Endo have faced significant legal challenges, primarily related to their involvement in the U.S. opioid epidemic.

Mallinckrodt has been involved in extensive litigation related to opioid sales and pricing practices. The company filed for Chapter 11 bankruptcy in 2023 to address its long-term debt and opioid obligations. As part of its financial restructuring plan, Mallinckrodt agreed to a $1.6 billion settlement to address claims related to the opioid crisis. The company also initiated examinership proceedings in Ireland to implement certain aspects of its financial restructuring.

Endo International has also faced significant legal challenges due to its involvement in the opioid crisis. The company filed for Chapter 11 bankruptcy in 2022 after agreeing to a $6 billion settlement with creditors to address outstanding lawsuits related to its marketing and promotion of opioid products.

Endo has also been involved in litigation with the FDA and bulk compounders over the production of vasopressin, a drug used to treat low blood pressure.

Both companies have taken steps to restructure their finances and address their legal obligations, but they continue to face challenges related to their past actions in the opioid crisis.

Impact of Merger in India Operations 

In India, Mallinckrodt Pharmaceuticals operates through its subsidiary, Mallinckrodt Pharmaceuticals India Private Limited. The company was incorporated on November 27, 2012, and is classified as a subsidiary of a foreign company. It is involved in the manufacture of basic Chemicals.

However, it appears that the company's operations in India are currently inactive, as its status is listed as "Strike Off".

Endo International has a more active presence in India. The company operates several manufacturing facilities in the country, including locations in Indore, Chennai, Mumbai, and Dhar.

Notably, Endo received U.S. FDA approval for its manufacturing facility in Indore, which is designed for the aseptic manufacturing of sterile injectable products. This facility is expected to significantly increase Endo's sterile injectable production capacity and expand its future growth potential.

The merger could lead to increased investment in these India facilities, enhancing production capabilities and expanding the range of products manufactured in India. Additionally, the merger could result in the consolidation of resources, leading to improved efficiency and cost saving.

The combined entity could leverage its expanded product portfolio to capture a larger share of the Indian pharmaceutical market.