Radiopharmacies Now on Dealmakers’ Radar

You can’t get much more “specialty” in the specialty pharmacy business than to deal in radiopharmaceuticals. Two recent deals, announced in August, show this area is heating up. IBA Molecular, a global maker and distributor of radiopharmaceutical products, agreed to pay approximately $613 million for Mallinckrodt’s (NYSE: MNK) nuclear imaging business, including a portfolio of diagnostic imaging products. The U.S. market accounts for approximately two thirds of the division’s current annual revenues. For Mallinckrodt, the sale continues its strategic portfolio transformation, as the company evolves to handle specialty pharmaceuticals that don’t glow. IBA... Read More »
J&J Slices Its Medical Device Division

J&J Slices Its Medical Device Division

Johnson & Johnson (NYSE: JNJ) announced the restructuring of its medical devices business on January 19, 2016. Its 8K filing noted pre-tax restructuring charges of $2.0 billion to $2.4 billion, expected to be incurred this year, as well as a Q4:15 charge of approximately $600 million. About 4% to 6% of the division’s global workforce will get walking papers over the next two years, resulting in a $500 million charge for severance. On a more upbeat note, JNJ expects to see annualized pre-tax cost savings of $800 million to $1.0 billion. This move comes as the market for medical devices has slowed, particularly in the United States. As one of many cost-cutting measures, U.S.... Read More »