Some three months after merging, Mallinckrodt and Endo have taken the next step toward their joint future by spinning off their sterile injectables and generics businesses.
With the transformation complete, the new generics entity—which also produces drug ingredients—will operate under the moniker Par Health, while Mallinkcrodt and Endo’s branded medicines business will take up the name Keenova Therapeutics.
The move comes after the companies said they would join forces in a deal worth some $6.7 billion back in March. Mallinckrodt and Endo have struggled in recent years thanks to tough market conditions and persistent opioid litigation, which prompted both drugmakers to separately file for bankruptcy.
Keenova will focus its attention on branded medicines for people with “rare, stigmatized, or unaddressed conditions,” while Par Health is positioning itself as the “essential pharmaceutical company," according to a Tuesday announcement. Par will direct its efforts toward production of generics, sterile injectables and active pharmaceutical ingredients, boasting a global workforce numbering in the thousands.
Under the new structure, Keenova aims to list its shares on the New York Stock Exchange next year, the company said in a Nov. 10 press release. With the portfolios of Mallinckrodt and Endo, Keenova says it had a 2024 pro forma combined revenue of $1.7 billion, fueled by products like corticotropin-based Acthar Gel for inflammatory or autoimmune conditions and Xiaflex, which is used to treat Dupuytren’s contracture and Peyronie’s disease.
Looking to identify areas of future growth, Keenova is casting a wide net as it aims to strengthen its pipeline in areas such as rheumatology, ophthalmology, nephrology, pulmonology, neurology, urology and orthopedics.
Keenova employs more than 1,600 people and is headquartered in Dublin while also maintaining a “U.S.-focused commercial and manufacturing footprint,” the press release states. The company is being led by former Mallinckrodt CEO Siggi Olafsson.
"We are proud to introduce Keenova Therapeutics as a new company with a new identity and a new future," Olafsson said in Keenova’s press release. "The name 'Keenova' reflects two complementary attributes of our Company—a keen focus on helping patients receive the care they deserve and the innovation required to develop our therapeutics.”
The merged and rebranded drug developer will operate under the tagline “Keen to Solve, Keen to Serve,” Olafsson added.
In tandem with the corporate refresh, Mallinckrodt issued its earnings report for the third quarter Monday. In all, the company reported net sales of $753 million, which included around two months of sales from Endo after the two companies officially tied up Aug. 1. Those combined results came out roughly 39% above the sum Mallinkcrodt generated on its own for the same period in 2024.
For its part, Par Health says it’s setting out as one of the U.S.’ top 15 generic medicines manufacturers—and the largest U.S.-based producer of APIs by volume.
Par operates seven facilities in the U.S., with additional production sites located in India. The company is headquartered in St. Louis and boasts a portfolio of around 200 products across generics, API and sterile injectables following the Mallinckrodt-Endo fusion, according to the release.
"We are proud to launch Par Health with the scale, expertise, capabilities and purpose to lead in generics, sterile injectables and APIs," the company’s CEO and president, Stephen Welch, said in a statement. "This is a bold new beginning built on a legacy of excellence and a commitment to delivering high-quality, essential medicines to patients and healthcare providers worldwide.”
Par Health reported its own earnings Monday, delivering total third-quarter sales of $337.1 million.
The merger and corporate makeover represent a fresh start for Mallinckrodt and Endo, which have both faced significant financial pressure in recent years over their alleged roles in the opioid crisis.
Mallinckrodt first filed for bankruptcy in October 2020 over “significant litigation and debt issues,” then did so again in 2023 to help wrangle costs from opioid settlements. Endo also filed for bankruptcy in 2022 as it faced legal pressure over the promotion of its painkiller Opana ER, which was yanked from the market in 2017.