Mallinckrodt, Horizon enter co-promotion agreement for DUEXIS

MallinckrodtJun 18 2012

Mallinckrodt, the Pharmaceuticals business of Covidien (NYSE: COV), today announced that it has entered into a co-promotion agreement with Horizon Pharma, Inc. (NASDAQ: HZNP) to promote DUEXIS^® (ibuprofen and famotidine). DUEXIS is a proprietary single-tablet combination of the non-steroidal anti-inflammatory drug ibuprofen and the histamine H2-receptor antagonist famotidine and is indicated for the relief of signs and symptoms of rheumatoid arthritis and osteoarthritis and to decrease the risk of developing upper gastrointestinal ulcers.

“This agreement represents a key component of our growing pharmaceuticals business as Mallinckrodt prepares to spin off from Covidien next year”

Under the terms of the agreement, Mallinckrodt's U.S. sales force will sell DUEXIS through December 31, 2014. Horizon and Mallinckrodt have agreed upon physician promotion targets and Mallinckrodt will be compensated for each prescription generated from these targets. The Mallinckrodt sales force is expected to begin promoting DUEXIS to physicians in August 2012. Horizon will continue to record all revenues and remain responsible for DUEXIS manufacturing, supply and regulatory activities.

"This agreement represents a key component of our growing pharmaceuticals business as Mallinckrodt prepares to spin off from Covidien next year," said Mark Trudeau, President, Pharmaceuticals. "We are leaders in pain management, and adding DUEXIS to our portfolio will further advance our efforts to help patients manage the often-debilitating impact of pain. We look forward to working with Horizon and providing DUEXIS to our customers."

"The addition of Mallinckrodt's experienced sales force will expand our reach and frequency into the osteoarthritis and rheumatology markets," said Timothy P. Walbert, Chairman, President and Chief Executive Officer, Horizon Pharma.

Mallinckrodt is the largest U.S. supplier of opioid pain medications and among the top 10 generic pharmaceuticals manufacturers in the U.S., based on prescriptions. Its branded portfolio includes EXALGO^® (hydromorphone HCl) Extended-Release Tablets (CII) and PENNSAID^® (diclofenac sodium topical solution) 1.5% w/w. Mallinckrodt is also one of the world's leading producers of bulk acetaminophen.

Covidien announced last December that the Company planned to spin off Mallinckrodt into a stand-alone company, a process that is expected to be completed in mid-2013.