Less than a year after emerging from its second bankruptcy, Mallinckrodt is selling its photopheresis platform Therakos to help pay off debt.
Luxembourg-based CVC Capital Partners has agreed to pay $925 million for Therakos, Mallinckrodt’s system for treating white blood cells using ultraviolet light. The platform has been on the market for more than three decades, but has been owned by Mallinckrodt for just under 10 years. The deal will allow Mallinckrodt to reduce its net debt by more than half, according to the company.
Last fall, a Delaware federal bankruptcy judge approved Mallinckrodt’s reorganization plan, which allowed the company to exit its second bankruptcy in three years.
Mallinckrodt said “key employees” who work on Therakos will transition with the business. The company was not immediately available for further comment.
Therakos accounted for about 12% of Mallinckrodt’s sales in the first quarter of 2024, according to an earnings report. It bought the business for $1.3 billion in 2015.
“We see significant opportunities ahead to expand Therakos’ indications, enter new geographies and bring this innovative treatment to more patients around the world,” CVC Managing Partner Cathrin Petty and Managing Director Phil Robinson said in a joint statement.
Mallinckrodt will be acquired by CVC’s Fund IX, which raised $28.4 billion (€26 billion) last July. The deal is expected to close in the fourth quarter.