Pharma BD Deal Intelligence

Mallinckrodt plc / Sucampo Pharmaceuticals, Inc.

2017 · Acquisition/Merger · $1.2B · Complete

WRONG BY 39 POINTS

A $1.2B bet that wrote itself off within a year — goodwill fully impaired in FY2018, the rare-disease pipeline asset failed Phase 3, and the buyer went bankrupt twice.

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The coverage arc

Dec 26, 2017 BioPharma Dive Neutral

Mallinckrodt's $1.2B Sucampo bet is less about Amitiza's mature CIC franchise and more about two Phase 3 rare-disease shots-on-goal—VTS-270 in NPC and…

Dec 28, 2017 BioPharm International Bullish

The acquisition brings near-term net sales and earnings accretion through Amitiza and bolsters our pipeline in rare diseases with VTS-270 and…

Jan 30, 2019 BioPharma Dive Bearish

VTS-270 missed its Phase 2b/3 primary endpoint in Niemann-Pick Type C, with neither arm progressing as expected—a confusing readout that called the program's…

Source summaries from our enrichment pipeline; follow links for originals.

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Mallinckrodt agreed to acquire Sucampo Pharmaceuticals via tender offer at $18.00/share in cash, total transaction value approximately $1.2B. The deal added Sucampo's lead commercial product Amitiza (chronic constipation) plus two Phase 3 rare disease assets: CPP-1X/sulindac for familial adenomatous polyposis and VTS-270 for Niemann-Pick Type C. Closed Q1 2018.

Did it work? Outcome assessment

A $1.2B bet that wrote itself off within a year — goodwill fully impaired in FY2018, the rare-disease pipeline asset failed Phase 3, and the buyer went bankrupt twice.

Strategic verdict
Failed to Achieve
Financial impact
Impaired/Written Down
Pipeline outcome
Assets Terminated

Key facts

Related deals — scored

DealYearValueOutcome
Mallinckrodt plc / Sucampo Pharmaceuticals, Inc. (this deal)2017$1.2B19
Mallinckrodt plc / Cadence Pharmaceuticals, Inc.2014$1.4B50
Mallinckrodt plc / Therakos, Inc.2015$1.3B48
Mallinckrodt plc / Ikaria, Inc.2015$2.3B37
Mallinckrodt plc / Questcor Pharmaceuticals, Inc.2014$5.6B18
Mallinckrodt plc / InfaCare Pharmaceutical Corporation2017$425M12
UCB SA / Celltech Group plc2004$2.7B92

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