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Market Commentary and Intraday News

Covidien to buy CNS Therapeutics for $100 million

241 days ago

(AP:NEW YORK) Drug and medical device maker Covidien PLC said Monday it agreed to buy CNS Therapeutics, a company that makes treatments for pain and spasticity, for $100 million.

CNS Therapeutics has one approved drug: gablofen, a generic version of a drug that treats severe spasticity. Covidien said the company is developing other pain and spasticity treatments. It expects its purchase of the St. Paul, Minn., company to close during the fourth quarter.

Covidien's Mallinckrodt pharmaceuticals business is buying CNS. Covidien, which is based in Ireland, is planning to spin off Mallinckrodt into a separate publicly-traded company sometime in mid-2013.

Shares of Covidien rose 13 cents to $59.90 in morning trading.


Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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