The Life Sciences team represented Ocera Therapeutics, Inc. (NASDAQ:OCRX) in its agreement to be acquired by Mallinckrodt plc (NYSE:MNK). A subsidiary of Mallinckrodt will commence a cash tender offer to purchase all of the outstanding shares of Ocera Therapeutics common stock for $1.52 per share (approximately $42 million), plus one contingent value right to receive one or more payments in cash of up to $2.58 per share (up to approximately $75 million) based on the successful completion of certain development and sales milestones. The transaction is expected to close in the fourth quarter of 2017, subject to customary closing conditions.
Ocera’s developmental product OCR-002, an ammonia scavenger, is being studied for treatment of hepatic encephalopathy (HE), a neuropsychiatric syndrome associated with hyperammonemia, a complication of acute or chronic liver disease. If approved, OCR-002 is expected to become the first intravenous pharmacologic option indicated for treatment of acute HE in the U.S. Roughly 200,000 U.S. hospitalizations result from acute HE each year and approximately 1.5 to 2 million patients are at risk of recurrent HE.
Ocera Therapeutics, Inc. is a clinical stage biopharmaceutical company focused on the development and commercialization of OCR-002 (ornithine phenylacetate) in both intravenous and oral formulations. OCR-002 has been granted Orphan Drug designation and fast track status by the U.S. Food and Drug Administration for the treatment of hyperammonemia and resultant hepatic encephalopathy in patients with acute liver failure and acute-on-chronic liver disease.
For additional details on the acquisition, please read the press release.