Covidien updates on medical device, pharma split

February 4, 2013 by MassDevice staff

Covidien makes progress on its long-anticipated split into separate medical device and pharmaceutical businesses, incorporating the Mallinckrodt drug company in Ireland.

Covidien logo

Healthcare giant Covidien (NYSE:COV) issued updates on its long-awaited split into separate medical device and drug units and incorporated the Mallinckrodt pharmaceutical division as an independent entity in Ireland.

Covidien has not yet issued a date for completion of the split or distribution of Mallinckrodt shares to current Covidien shareholders, but has said it expects to finalize the spinout by "mid-2013," according to the Mallinckrodt website.

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Mallinckrodt has been around since 1867 as G. Mallinckrodt & Co. and grew as a leader in pain management medications. The company was a $2 billion concern when it was acquired in 2000 by Covidien forebear Tyco International (NYSE:TYC).

Tyco spun out its healthcare products division in 2007 to form Tyco Healthcare, which was later renamed Covidien and in December 2011 Covidien announced plans to spin off Mallinckrodt as a standalone public entity.

Mallinckrodt today filed its initial SEC registration statement, which Covidien chairman, president & CEO Jose Almeida called "an important milestone" in the spinout process.