Summary: Covidien separates its pharmaceuticals
business, which is now held by Mallinckrodt plc, a new independent company.
July 2, 2013 - Covidien, a
leading global provider of healthcare products, today announced it has
completed the separation of its pharmaceuticals business, which is now held by
Mallinckrodt plc, a new independent company. Mallinckrodt will begin “regular
way” trading on the New York Stock Exchange today under the symbol “MNK.”
The distribution of
Mallinckrodt ordinary shares occurred on June 28, 2013. In the distribution,
Mallinckrodt issued one ordinary share for every eight Covidien ordinary shares held as of the
close of business on June 19, 2013, the record date for the distribution.
In fiscal 2012,
excluding the pharmaceuticals business, Covidien had annual sales of $9.9
billion, about evenly split between the United States (U.S.) and non-U.S.
markets. The medical
devices business segment represented about 80% of the company’s sales, with
devices comprising the remainder. These categories represent approximately
90% of its sales.
Covidien announced in December 2011 that
it planned to spin-off the pharmaceuticals business. While both businesses hold
industry-leading positions, they have distinctly different business models,
sales channels, customers and capital requirements. In addition, their
respective innovation pipelines differ substantially in length, regulatory
approval requirements, possible risks and potential returns. The spin-off will
enable both businesses to pursue their own strategic and operational plans,
including setting optimal levels of investment in research and development and
creating business-appropriate capital structures.
"We wish our colleagues at Mallinckrodt continued success as they launch a
new, independent specialty pharmaceuticals company focused on pain management
and medical imaging diagnostics," said José E. Almeida, Covidien Chairman, President and CEO.
“Mallinckrodt has strong market positions based on its core strengths in
manufacturing and pharmaceutical formulation.”
"Covidien is well positioned to
deliver on its strategic initiatives, including broadening innovation focus,
aggressively managing its portfolio, capitalizing on emerging markets
opportunities and optimizing spending to provide for investments in innovation
and growth," said Mr. Almeida. “We are maintaining our long-term financial
goals and continue to target top-line growth at or above the markets in which
Covidien looks to grow sales at or above the rate of the underlying markets and
maintains its previously communicated long-term financial goals of mid-single
digit sales growth and double-digit adjusted EPS growth over time. The company
plans to leverage its strong cash flow for long-term profitable growth and
remains committed to returning at least 50% of its free cash flow to
shareholders annually through dividends and share repurchases.
For more information: www.covidien.com and www.appliedradiology.com