Leading Health and Life Sciences in Nova Scotia

Mallinckrodt Agrees to Sell BioVectra Inc. to H.I.G. Capital for $250 Million

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— Transaction continues to advance Mallinckrodt’s strategic focus on branded biopharmaceuticals by monetizing a non-core business —
— H.I.G. Capital to support BioVectra leadership and its attractive growth plan —

STAINES-UPON-THAMES, United Kingdom and MIAMI – Sept. 10, 2019 – Mallinckrodt plc (NYSE: MNK), a global biopharmaceutical company, today announced it has entered into a definitive agreement to sell its wholly owned subsidiary BioVectra Inc. to an affiliate of H.I.G. Capital, a leading global private equity investment firm, for approximately $250 million, including fixed consideration of $175 million, comprised of an upfront payment of $135 million and a long-term note for $40 million, and contingent payments of up to $75 million, enabling Mallinckrodt to capture future BioVectra growth potential.

BioVectra is a contract development and manufacturing organization (CDMO) whose global client base includes many of the top biopharmaceutical companies in the world. The company has a unique mix of capabilities, with core growth engines in complex chemistry, biologics and drug development. BioVectra will continue to supply an active pharmaceutical ingredient supporting Mallinckrodt’s specialty brands business under a long-term arrangement. The transaction is anticipated to include all of BioVectra’s sites in Prince Edward Island and Nova Scotia, Canada, as well as its employee base.

“This transaction continues to advance Mallinckrodt’s strategic focus on branded, high-growth biopharmaceuticals by monetizing a non-core business,” said Mark Trudeau, President and Chief Executive Officer of Mallinckrodt. “While we recognize the longer-term growth potential for BioVectra, we believe that the structure of this deal enables us to participate in the future success of the business, and therefore we see this sale as the best option for both Mallinckrodt and BioVectra moving forward.”

“We are excited to support BioVectra’s exceptional leadership and highly dedicated employees,” said Mike Gallagher, Managing Director at H.I.G. Capital. “BioVectra demonstrates a tremendous ability to generate robust organic growth and utilizes a broad set of technical capabilities to deliver outstanding service and quality. They are completing major capital expenditure programs to significantly expand capacity and the company is well positioned to capitalize on growing demand for their services.”

The transaction is expected to close in the fourth quarter of 2019, subject to customary closing conditions. It is not anticipated that the sale will have any material tax impact to Mallinckrodt. The company intends to use the proceeds from this divestiture consistent with its previously disclosed capital allocation priorities.

Goldman Sachs & Co. LLC served as financial advisor and Latham & Watkins LLP served as legal advisor to Mallinckrodt in connection with the transaction.

Wells Fargo Securities LLC served as financial advisor and McDermott Will & Emery LLP served as legal advisor to H.I.G. Capital.

About BioVectra

BioVectra is a CDMO that serves global pharmaceutical and biotech companies with full-service cGMP outsourcing solutions for intermediates and active pharmaceutical ingredients (APIs). An innovative and reliable service partner with a strong regulatory history, BioVectra has over 45 years of experience specializing in:

  • cGMP microbial fermentation
  • Complex chemistry – high potency APIs
  • Biologics
  • Formulation development

For more information about BioVectra, please visit www.biovectra.com.

About Mallinckrodt

Mallinckrodt is a global business consisting of multiple wholly owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. The company’s Specialty Brands reportable segment’s areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, nephrology, pulmonology and ophthalmology; immunotherapy and neonatal respiratory critical care therapies; analgesics and gastrointestinal products. Its Specialty Generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients. To learn more about Mallinckrodt, visit www.mallinckrodt.com.

Mallinckrodt uses its website as a channel of distribution of important company information, such as press releases, investor presentations and other financial information. It also uses its website to expedite public access to time-critical information regarding the company in advance of or in lieu of distributing a press release or a filing with the U.S. Securities and Exchange Commission (SEC) disclosing the same information. Therefore, investors should look to the Investor Relations page of the website for important and time-critical information. Visitors to the website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Investor Relations page of the website.

About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with more than $34 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/value-added approach:

  1. I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
  2. I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
  3. I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.

Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

*Based on total capital commitments managed by H.I.G. Capital and affiliates.

CAUTIONARY STATEMENTS RELATED TO FORWARD-LOOKING STATEMENTS
Statements in this document about Mallinckrodt that are not strictly historical, including statements regarding the proposed divestiture; the expected timetable for completion of the divestiture; the potential use of proceeds from the divestiture; payment on the long-term note and future contingent payments; future financial condition and operating results; economic, business, competitive and/or regulatory factors affecting Mallinckrodt’s businesses; and any other statements regarding events or developments that the company believes or anticipates will or may occur in the future, may be “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties.

There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include risks and uncertainties related to, among other things: the parties’ ability to satisfy the conditions to the divestiture, and complete the divestiture on the anticipated timeline or at all; the buyer’s ability to make payments on the long-term note or future contingent payments; general economic conditions and conditions affecting the industries in which Mallinckrodt operates; the commercial success of Mallinckrodt’s products; Mallinckrodt’s ability to realize anticipated growth, synergies and cost savings from acquisitions; conditions that could necessitate an evaluation of Mallinckrodt’s goodwill and/or intangible assets for possible impairment; changes in laws and regulations; Mallinckrodt’s ability to successfully integrate acquisitions of operations, technology, products and businesses generally and to realize anticipated growth, synergies and cost savings; Mallinckrodt’s and Mallinckrodt’s licensers’ ability to successfully develop or commercialize new products; Mallinckrodt’s and Mallinckrodt’s licensers’ ability to protect intellectual property rights; Mallinckrodt’s ability to receive procurement and production quotas granted by the U.S. Drug Enforcement Administration; customer concentration; Mallinckrodt’s reliance on certain individual products that are material to its financial performance; cost containment efforts of customers, purchasing groups, third-party payers and governmental organizations; the reimbursement practices of a small number of public or private insurers; pricing pressure on certain of Mallinckrodt’s products due to legal changes or changes in insurers’ reimbursement practices resulting \from recent increased public scrutiny of healthcare and pharmaceutical costs; limited clinical trial data for Acthar Gel; complex reporting and payment obligations under healthcare rebate programs; Mallinckrodt’s ability to navigate price fluctuations; future changes to U.S. and foreign tax laws; Mallinckrodt’s ability to achieve expected benefits from restructuring activities; complex manufacturing processes; competition; product liability losses and other litigation liability; ongoing governmental investigations; material health, safety and environmental liabilities; retention of key personnel; conducting business internationally; the effectiveness of information technology infrastructure; and cybersecurity and data leakage risks; Mallinckrodt’s substantial indebtedness and its ability to generate sufficient cash to reduce its indebtedness; and any future actions taken with respect to the Specialty Generics business.

These and other factors are identified and described in more detail in the “Risk Factors” section of Mallinckrodt’s Annual Report on Form 10-K for the fiscal year ended December 28, 2018. The forward-looking statements made herein speak only as of the date hereof and Mallinckrodt does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise, except as required by law.

CONTACTS

Investor Relations
Mallinckrodt:
Daniel J. Speciale, CPA
Vice President, Investor Relations and IRO
314-654-3638
[email protected]

Media
Mallinckrodt:
Daniel Yunger
Kekst CNC
212-521-4879
[email protected]

BioVectra:
Jordan MacGregor
Communications and Marketing Manager
BioVectra Inc.
902-566-9116 ext. 6376
[email protected]

H.I.G. Capital:
Mike Gallagher
Managing Director
305-379-2322
[email protected]

Mallinckrodt, the “M” brand mark and the Mallinckrodt Pharmaceuticals logo are trademarks of a Mallinckrodt company. Other brands are trademarks of a Mallinckrodt company or their respective owners. © 2019 Mallinckrodt. 9/19

ACOA NEWS RELEASE: Panag Pharma providing effective, non-addictive plant-based pain management

Halifax biotech company developing safe, cutting-edge products to ease chronic pain, inflammation

July 11, 2019 – Halifax, NS – Atlantic Canada Opportunities Agency
Innovative new treatments for pain management improve the daily lives of Canadians. Panag Pharma Inc. is developing a line of plant-based remedies to fight chronic pain and inflammation, helping people enjoy a better quality of life, and growing Atlantic Canada’s life sciences sector.

The Halifax biotechnology company is creating a family of both over-the-counter and prescription cannabinoid-based products that provide safe, effective, non-addictive pain management. The treatments act directly on the pain receptors in the body and are used for wound healing, treating irritated skin and relieving cold sores, among other applications. Unique in the world, these natural medications enable the company to create highly skilled jobs and position it well for future growth.

Today, Andy Fillmore, Parliamentary Secretary to the Minister of Canadian Heritage and Multiculturalism and Member of Parliament for Halifax, on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency (ACOA), announced support for Panag Pharma Inc. as it develops and commercializes its innovative products.

The Government of Canada is making smart investments that will create good, highly skilled jobs in our country. It is helping small and medium-sized businesses to start-up, expand or modernize and supporting not-for-profit industry organizations to fuel business growth. Support for this project is one way the Government of Canada is working to achieve its Atlantic Growth Strategy outcome of long-term economic prosperity in the region.

Quotes
“Innovation that focuses on the commercialization of research to improve the quality of people’s lives can have far-reaching global impacts. That is why the Government of Canada is committed to projects such as this one that showcase the best of what Atlantic Canada offers, providing quality bio-innovations that attract investment and talent and advance regional economic prosperity.”
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, and Minister responsible for ACOA

“When a local organization develops groundbreaking solutions to treat problems like chronic pain, it not only improves the daily lives of Canadians, but also bolsters development of the life science sector in the region. The Government of Canada is proud to support local businesses like Panag Pharma that spur economic growth, create highly skilled jobs and make the world a better, and less painful, place.”
– Andy Fillmore, Parliamentary Secretary to the Minister of Canadian Heritage and Multiculturalism and Member of Parliament for Halifax

“We are extremely pleased to have the support of the ACOA. This contribution clearly underlines the confidence the Agency has in our strategic direction to further grow our business and to our commitment to the Province of Nova Scotia and Atlantic Canada. Our management and employees are grateful for the opportunities this financing presents.”
– Chris MacLean, Chief Operating Officer, Panag Pharma Inc

“Today’s announcement reminds me of the expression that it takes a village. With the ingenuity and innovation of our life sciences group Panag, the marketing expertise of Tetra Natural Health, the licensing skills of Tetra Bio-Pharma, assistance with facilities from Dalhousie University and the generosity and confidence of the Atlantic Canada Opportunities Agency, we are able to showcase what collaboration can accomplish and it is something we should all be justifiably proud of.”
– Dr. Bill Cheliak, Chairman of the Board of Directors of Tetra Bio-Pharma Inc.

Quick Facts
 Panag Pharma is a wholly owned subsidiary of Ontario’s Tetra Bio-Pharma. The Panag Pharma team of PhD scientists and medical doctors are leading researchers and clinicians in the area of pain treatment and management. They bring a combined experience of more than 100 years in research and clinical care of people dealing with chronic pain and inflammatory conditions.
 Panag Pharma Inc. plans to produce AWAYE™, a topical over-the-counter medication for the temporary relief of aches and pains of muscles and joints associated with one or more of strains/sprains involving muscles, tendons, and/or ligaments, arthritis, simple backache and/or lumbago. The product, which is manufactured in New Brunswick, is already Health Canada approved and has a Natural Product Number. It is currently undergoing clinical trials and will be available through online distribution, over the counter in pharmacies, and by prescription.  Other treatments for cold sores, hemorrhoids, interstitial cystitis and corneal ulcers are in development.
 The Government of Canada is providing a repayable contribution of $500,000 to Panag Pharma Inc. through ACOA’s Business Development Program.
 The BDP primarily assists Atlantic Canadian entrepreneurs who want to start a business, increase productivity or improve operations. Investments under the BDP address any gap that may arise if an application does not fit within ACOA’s Regional Economic Growth through Innovation (REGI) program.
 The Business Development Program continues to build on the objectives of Innovation and Skills Plan, a multi-year strategy to create well-paying jobs for the middle class and those working hard to join it.

Contacts
Chris Brooks
Director, Communications and Outreach
Atlantic Canada Opportunities Agency
902-426-9417 / 902-830-3839 (cell)
[email protected]

Chris MacLean
Chief Operating Officer
Panag Pharma Inc.
902-499-6959 (cell)
[email protected]

energi PR
Marissa Zanti
Vice-President, Healthcare
437-215-6888 (cell)
[email protected]

ENTREVESTOR: ACOA Lends $925K to Beyond Food

See full Entrevestor article here

The federal government has lent Dartmouth-based Beyond Food Inc. $925,000 to develop a manufacturing plant and market its nutritional supplement made out of grocery store produce nearing its sell-by date.

The two-year-old company’s mission is to reduce food wastage, which now amounts to $49.5 billion a year in Canada alone, by finding supermarket produce that is about to be tossed out and using it to make a food supplement. It sells nutrition products under the brand TDF Sports, and the supplements are available nationwide.

The Atlantic Canada Opportunities Agency issued a statement Tuesday saying Beyond Food is establishing a new manufacturing facility in Dartmouth to scale up its plant-based nutritional supplement production capacity. This will allow the company to rent its Nutrient Upcycle pods, which are repurposed shipping containers fitted with clean processing technology, to local grocers.

The pods will enable grocers to dehydrate and transform thousands of dollars worth of late-stage fruits and vegetables into nutrient-dense powders. The powders will then be used as ingredients in value-added supplements manufactured and packaged at Beyond Food’s new facility in Dartmouth.

ENTREVESTOR: Appili Starts Trading on TSXV

See full Entrevestor article here

Shares of Halifax drug discovery company Appili Therapeutics Inc. begin trading on the TSX Venture exchange today.

The company, whose long-term goal is to produce drugs that can combat antibiotic-resistant viruses, issued a statement Monday evening saying  the Toronto Stock Exchange had accepted its application for an initial public offering.

Appili is not raising new funds in the listing as it meets the TSX Venture requirements for capital, with enough money in the bank to last until mid-2020. The company raised $3.6 million earlier in the year via a sale of warrants. Since inception, the company has raised a total of $15.4 million in equity funding and $19 million in non-dilutive funds, and decided last autumn that its best long-term route to capital would be found in public markets.

“This public listing is an important part of our evolution as we look to continue to build our pipeline of products that treat the most serious threats to human health,” said Appili CEO Kevin Sullivan in an email Monday night. “It really is an exciting part of our life cycle/growth strategy that we are keen to show the markets.”

NEWS RELEASE: Halifax firm improves lives and provides faster results with new technology

Alentic Microscience Inc. commercializes its blood diagnostic device for medical settings March 4, 2019 – Halifax, NS – Atlantic Canada Opportunities Agency Cutting-edge ideas in life sciences are reaching the marketplace faster than ever, providing Canadians with less invasive and more effective treatment options that improve patient outcomes. Determined to provide mobile healthcare solutions that give immediate results, Alentic Microscience Inc. has developed a pocket-sized diagnostic device that can generate test results in under five minutes, from any location, using only a drop of blood from a pinprick. Conceived for medical diagnostics, Alentic’s technology was chosen by the Canadian Space Agency to conduct immunological research in real-time aboard the International Space Station. Alentic is now commercializing its technology to be used in hospitals, clinics, veterinary settings or in the field. The device uses patented technology to analyze a tiny quantity of blood, producing high quality blood test results immediately at patient point-of-care. The device can perform different types of tests rapidly, which will improve patient care, reduce wait times, lower costs and increase healthcare efficiencies. Today, Andy Fillmore, Parliamentary Secretary to the Minister of Canadian Heritage and Multiculturalism and Member of Parliament for Halifax, on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency (ACOA), announced $2,992,162 in Government of Canada support to Alentic Microscience Inc. for the project. This investment builds on commitments made by the Government of Canada and the four Atlantic Provinces to drive economic growth in the region through the Atlantic Growth Strategy, which supports strategic investments that build on the region’s competitive advantages, including its growing innovation ecosystem and skilled workforce. Quotes: “In a time of rapid technological change and global interconnectedness, we have an opportunity to leverage our healthcare innovations to achieve even greater impact through advances in life sciences. With commitment and bold action, Atlantic Canada can be a frontrunner for the country, and the world, in providing quality bio-innovations that attract investment and talent, advance our economic prosperity and provide better healthcare to Canadians.” – The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for ACOA “Alentic’s technology is working to transform traditional patient care with shorter wait times for test results. This innovative tool has the potential to improve the lives of thousands of Canadians, particularly those who have health conditions such as heart disease, anemia and immune disorders, for which frequent blood tests are vital to properly manage these illnesses.” – Andy Fillmore, Parliamentary Secretary to the Minister of Canadian Heritage and Multiculturalism and Member of Parliament for Halifax “All of us at Alentic Microscience are deeply grateful to ACOA for their enabling financial support. This contribution will allow us to achieve critical research, development and commercialization milestones on our path to selling Alentic’s revolutionary diagnostic devices in Canada and abroad. The money further allows us to grow our superb team as we approach market entry.” – Alan Fine, CEO, Alentic Microscience Inc. Quick Facts: • Alentic Microscience is receiving a $2,992,162 repayable contribution through ACOA’s Business Development Program (BDP). • The funding will help create six jobs, including a biological engineer, a software developer and an embedded systems engineer, in addition to maintaining 15 jobs, to help with the planning, detailed design, prototype assembly, testing and clinical trials of new devices. • Alentic’s technology is fully operational for specific cellular analyses currently used in medical and veterinary settings. • In collaboration with Honeywell International Inc., Alentic successfully obtained a multi-million dollar contract with the Canadian Space Agency to develop specific diagnostic tests and a device to monitor astronauts’ immune systems in real time, an important task that was previously impossible. • Alentic Microscience Inc. has been granted ten patents in the United States, one in Canada and one in China, with many more patents in progress. • The BDP primarily assists Atlantic Canadian entrepreneurs who want to start a business, increase productivity or improve operations. • The Business Development Program continues to build on the objectives of the Innovation and Skills Plan, a multi-year strategy to create well-paying jobs for the middle class and those working hard to join it. Associated Links:Bio-Analyzer: Instant biomedical results from space to Earth Contacts: Chris Brooks Director, Communications and Outreach Atlantic Canada Opportunities Agency 902-426-9417 / 902-830-3839 (cell) [email protected] Alan Fine CEO Alentic Microscience Inc. 902-407-0827 / 902-440-3825 [email protected]]]>