IBA Molecular Acquires Mallinckrodt Nuclear Imaging

IBA Molecular, a supplier of molecular imaging and other technologies in nuclear medicine, has completed its acquisition of the nuclear imaging business of Mallinckrodt plc, a specialty pharmaceutical company, following the receipt of regulatory approvals. The acquisition of Mallinckrodt Nuclear Imaging, announced in August 2016, brings together two nuclear imaging businesses with complementary strengths, manufacturing capabilities, commercial footprints and operational networks.

IBA Molecular produces radioactive tracers used in molecular imaging and therapy to diagnose and monitor a range of common diseases including cancer, heart, brain and bone. Mallinckrodt develops, manufactures, markets and distributes specialty pharmaceutical products and therapies focusing on autoimmune and rare diseases in specialty areas, such as neurology, rheumatology, nephrology, pulmonology and ophthalmology; immunotherapy and neonatal respiratory critical care therapies; analgesics and hemostasis products; and central nervous system drugs. Mallinckrodt Nuclear Imaging is a producer of the medical isotope molybdenum-99, and its derivative, Technetium-99m, which is used in nuclear medicine procedures.

The enlarged business will comprise 21 manufacturing centers (including 3 SPECT sites, 1 molybdenum manufacturing facility and 17 PET sites) and commercial operations across 60 countries, and will provide potentially life-saving diagnostic solutions to over 14 million patients globally on an annual basis. It will employ over 1,500 people globally, supplying more than 6,000 public and private hospitals around the world with diagnostic solutions. Nuclear imaging will continue to be at the core of the enlarged organization, while a new name and brand currently being developed is due to be rolled out in the coming months.

Commenting on the announcement, Renaud Dehareng, current CEO of IBA Molecular and the new CEO of the enlarged Group, said, "We have created a world-class provider in nuclear imaging. The figures speak for themselves. We will use our scale, global reach, manufacturing footprint and experience to deliver a superior and more sharply focused service that our customers can rely upon everyday."

"The divestiture of our Nuclear Imaging business is another important step toward the evolution of our portfolio," said Mark Trudeau, President and Chief Executive Officer of Mallinckrodt. "Our Nuclear Imaging business is an excellent strategic fit for the IBAM organization and we believe the expanded global reach of the combined business will enable IBAM to substantially increase its ability to meet the needs of patients around the world. With this transaction, we are pleased to welcome IBAM to the St. Louis area."

Commenting on behalf of CapVest, the owner of the enlarged business, Kate Briant, CapVest Partner and Chairman of the Board, said, "Nuclear imaging is an essential diagnostic tool in modern medicine, underpinned by positive long-term fundamentals. We are thrilled to have completed this acquisition as it further consolidates the Group's leadership position in this attractive segment. We believe there will be lots of future growth opportunities to exploit as we seek to grow the market in the coming years. We look forward to working closely with Renaud and his new leadership team as they pursue their ambitious growth plans for the business."