DUBLIN, IRELAND, AND MALVERN, PA — Pharmaceutical leaders Mallinckrodt plc and Endo, Inc. (OTCQX: NDOI) have entered an agreement to merge, creating a global, diversified company poised to deliver enhanced patient access and innovative therapies. The transaction, involving a mix of cash and stock, will strengthen the scale and financial flexibility of the combined entity, with planned listing on the New York Stock Exchange (NYSE).
The merger strategically unites two highly complementary companies, enhancing their branded product portfolios and consolidating their generic and sterile injectables operations into a robust unit that will eventually be separated. The combined company is expected to generate at least $150 million in annual operating synergies by the third year and $75 million in the first year, driven by integration efficiencies and shared expertise.
“This combination brings together two essential pharmaceutical organizations to accelerate value creation for our shareholders, customers, employees, and the patients we serve,” stated Siggi Olafsson, President and CEO of Mallinckrodt. “With durable products, strong cash flow, and greater financial flexibility, we are better positioned to unlock the full potential of both businesses and invest in long-term growth opportunities.”
The combined company will have a projected pro forma 2025 revenue of $3.6 billion and Adjusted EBITDA of $1.2 billion. It will operate a heavily U.S.-focused footprint, supported by 17 manufacturing facilities, 30 distribution centers, and approximately 5,700 employees worldwide. Mallinckrodt’s headquarters in Dublin will serve as the entity’s global headquarters.
Leadership will include Olafsson stepping into the role of President and CEO, while Endo Board member Paul Efron will serve as Chair of the combined company’s Board of Directors. Additional leadership appointments will follow in due course.
“Joining with Mallinckrodt presents a unique opportunity to build scale and deliver significant shareholder value, while maintaining focus on innovation and patient care,” said Scott Hirsch, Interim CEO of Endo. “The merged company will benefit from a portfolio of strong brands, cash flow, and balance sheet strength, enabling both near-term and long-term growth.”
Under the agreement, Endo shareholders will receive $80 million in cash and own 49.9% of the merged entity on a pro forma basis, with Mallinckrodt shareholders holding the remaining 50.1%. An implied enterprise value of $6.7 billion considers the aligned merger terms.
This merger is expected to close in the second half of 2025, contingent on shareholder and regulatory approvals. With its expanded reach and enhanced capabilities, the combined company is set to redefine its role in addressing unmet patient needs while driving advancement in the complex and regulated pharmaceutical landscape.
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