UK-based specialty pharma group Mallinckrodt has unveiled plans to spin-off its specialty generics and active pharmaceutical ingredients business into a new company.

The move is expected to create two independent, publicly traded companies – one focused on innovative specialty pharmaceutical brands, the other concentrated primarily in niche specialty generic products and API manufacturing.

Each will be positioned “to optimise future success as they pursue independent growth strategies”, the firm noted.

Mallinckrodt also said it expects the spin-off to be completed in the second half of 2019 or sooner, and that the new firm will be listed on the New York Stock Exchange (NYSE).

The 'remaining' independent Specialty Pharmaceutical Brands company will continue to focus on its portfolio of innovative marketed and development products.

“We expect this separation will result in greater strategic focus, allowing each business to more effectively enhance returns by commercialising new and current product offerings; drive innovation by allocating resources to the areas of highest opportunity; and pursue growth and investment strategies more directly aligned with each company's respective goals," said Angus Russell, Mallinckrodt's chairman of the Board, commenting on the move.