Covidien Reaches Into Past To Name Pharma Spin Off, Pulls Out Mallinckrodt

Nothing like a hurricane to catch up on some old news. At an investor day in early September, Covidien (COV) announced that the spinoff of its pharmaceutical group was on track for 2013 and would likely be completed by June of that year. The company also unveiled the new name for the company: Mallinckrodt Pharmaceuticals.

The name choice is hardly surprising given its rich history as a standalone entity. After operating for many years, Mallinckrodt was acquired by Tyco (TYC) in 2000 and then spun off as part of Covidien in 2007 during one of TYC’s breakups. The name even has its own Wiki page.

Due to the upcoming spin, the company didn’t discuss the outlook for the pharma segment so we will have to wait until the Form 10 is filed which is expected to be in Q1 2013. That should provide us with more than enough specific financial and operating information on the segment. In the meantime, CFO and EVP Charles Dockendorff reiterated that the company feels the spin is “going to drive shareholder value…going to focus the right capital deployment into the right areas and allow Mallinckrodt to compete more aggressively with their competitors out there in the marketplace.”

We will keep you updated.

Disclosure: Author holds no position in any stock mentioned.