Mallinckrodt and Endo explore potential $7 billion merger - Bloomberg

Investing.com -- Mallinckrodt (OTC:MNKKQ) Pharmaceuticals and Endo Inc. are considering a potential merger that could be worth approximately $7 billion, according to Bloomberg, citing sources familiar with the matter. The two pharmaceutical companies, both of which have emerged from bankruptcies and faced lawsuits related to the US opioid crisis in recent years, are discussing a deal that would give each approximately 50% ownership of the combined entity.

The merger could be finalized as early as this week. The newly merged entity is expected to be listed on the New York Stock Exchange, though the sources requested anonymity due to the confidentiality of the discussions. It’s important to note that these discussions are still ongoing and may not necessarily result in a transaction. Representatives for both Mallinckrodt and Endo have not provided any comments on the matter.

A merger would enable the two specialty pharmaceutical companies to reduce costs and leverage their combined scale to sell products and invest in growth opportunities. Both companies were active in acquiring other businesses during the peak period of large specialty pharmaceutical deals.

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