Mallinckrodt to sell Therakos unit to CVC Capital for $925 million

(Reuters) – Drugmaker Mallinckrodt said on Monday it will sell its Therakos business to CVC Capital Partners for $925 million.

Dublin-based Mallinckrodt, which bought the business in 2015 for $1.33 billion, said it will use the proceeds from the deal with CVC to reduce its debt by more than 50%.

Therakos’ treatment is used to treat skin symptoms of a type of cancer in people who are unresponsive to other types of treatment.

Mallinckrodt, which makes branded and generic drugs, said in November that it has emerged from bankruptcy.

(Reporting by Sriparna Roy in Bengaluru; Editing by Shounak Dasgupta)