MANSFIELD – Global biotechnology products provider Covidien PLC has completed the separation from its pharmaceuticals business, it announced Monday.
The separation was announced in December 2011 and independent company Mallinckrodt PLC is the new holder for Covidien’s pharmaceuticals business.
The separation was initiated because of the two businesses’ differing business models, capital requirement and customers, as well as various other diverging industry considerations. The spin-off permits Covidien and the pharmaceuticals business to tailor their operational plans such as capital structures and investment research plans.
“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,” Covidien President and CEO, José E. Almeida said in prepared remarks. “Mallinckrodt has strong market positions based on its core strengths in manufacturing and pharmaceutical formulation.”
Covidien said it is focusing on its financial goals for the future. Without the pharmaceuticals business, Covidien had sales of $9.9 billion in fiscal year 2012. Covidien is either in the number one or two market position for categories that comprise 90 percent of its sales, according to a company release.
“Covidien is well positioned to deliver on its strategic initiatives,” said Almeida. “We are maintaining our long-term financial goals and continue to target top-line growth at or above the markets in which we compete.”