Mallinckrodt Licenses Xenon Gas Product For Cardiac Patients

Mallinckrodt (MNK) said Monday it has licensed NeuroproteXeon’s xenon gas product for patients resuscitated after a cardiac arrest.

As a result of the deal, the company said it expects adjusted earnings per share to be reduced by $0.10 to $0.15 for the rest of 2017 and “modestly lower” in 2018.

Mallinckrodt will pay $10 million upfront to NeuroproteXeon to gain exclusive commercialization rights in the U.S., Canada, Japan and Australia.The company will also make additional milestone payments up to $25 million and a tiered, net-sales-based royalty. NeuroproteXeon will continue to be responsible for development costs.

Xenon gas is being evaluated to improve survival and functional outcomes for cardiac patients. Its U.S. Food and Drug Administration special protocol assessment has been approved for a phase 3 trial to begin in early 2018 and the drug has received orphan drug designation.

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