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A total loss: Mallinckrodt's $80M-upfront ($425M potential) buy of InfaCare's stannsoporfin for neonatal jaundice collapsed after an FDA advisory committee rejected it in 2018 and a Complete Response Letter followed, forcing a full $113.5M impairment with zero revenue ever generated.
Total loss: stannsoporfin was rejected by FDA and fully written off within two years of closing, with zero product revenue ever generated
Full analysis, sources & comparables →Mallinckrodt agreed to acquire InfaCare and stannsoporfin to expand its hospital and specialty franchise; the heavily milestone-weighted $425M structure…
FDA issued a Complete Response Letter for stannsoporfin following a 21-3 advisory committee vote against approval, citing insufficient evidence of…
Stannsoporfin's FDA rejection following the unfavorable AdComm vote effectively closed the path to a near-term first-in-class neonatal jaundice drug, leaving…
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Mallinckrodt agreed to acquire InfaCare Pharmaceutical, gaining stannsoporfin, a Phase 3 heme oxygenase inhibitor in development for severe neonatal hyperbilirubinemia. Deal structure: $80M upfront plus up to $345M in development, regulatory and sales-based milestones (~$425M aggregate). The deal expanded Mallinckrodt's hospital/specialty franchise. Stannsoporfin later faced an FDA refuse-to-file letter.
Total loss: stannsoporfin was rejected by FDA and fully written off within two years of closing, with zero product revenue ever generated
Assessment window: 5yr post-close.
Severe neonatal hyperbilirubinemia is a sharp rise in bilirubin in newborns, especially in infants with hemolysis (e.g., ABO/Rh incompatibility, G6PD deficiency), that, untreated, can cross the blood-brain barrier and cause kernicterus, an irreversible neurologic injury. The standard of care is phototherapy, with exchange transfusion and IVIG reserved for severe cases. Universal pre-discharge bilirubin screening and intensive phototherapy have made kernicterus rare in high-income countries.
At deal close (September 2017), severe neonatal hyperbilirubinemia management was almost entirely device- and procedure-based: intensive phototherapy (LED and fiberoptic blanket systems from GE Healthcare, Natus, Drager and others), exchange transfusion in extreme cases, and IVIG for hemolytic disease per AAP guidelines. There was no FDA-approved pharmacologic agent to prevent the rise of bilirubin. Stannsoporfin's heme oxygenase inhibition mechanism would have been the first drug to reduce bilirubin production at its enzymatic source, positioning Mallinckrodt to define a new pharmacologic category in the NICU/well-newborn-nursery setting. The clinical and commercial rationale was compromised by the FDA Joint Advisory Committee's 21-3 vote in May 2018 against approval, citing insufficient effectiveness evidence, followed by a Complete Response Letter in August 2018. The deal's heavily milestone-weighted structure (only $80M of the $425M paid upfront) limited Mallinckrodt's downside, but the program never reached commercialization. With universal screening already containing severe hyperbilirubinemia incidence, the addressable population was always narrow, and no comparable competing pharmacologic candidate has since advanced.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Mallinckrodt plc / InfaCare Pharmaceutical Corporation (this deal) | 2017 | $425M | 12 |
| Mallinckrodt plc / Cadence Pharmaceuticals, Inc. | 2014 | $1.4B | 50 |
| Mallinckrodt plc / Therakos, Inc. | 2015 | $1.3B | 48 |
| Mallinckrodt plc / Ikaria, Inc. | 2015 | $2.3B | 37 |
| Mallinckrodt plc / Sucampo Pharmaceuticals, Inc. | 2017 | $1.2B | 19 |
| Mallinckrodt plc / Questcor Pharmaceuticals, Inc. | 2014 | $5.6B | 18 |
| Watson Pharmaceuticals (Actavis Inc.) / Actavis plc | 2012 | $5.9B | 97 |
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