Covidien completes sale of pharmaceuticals division

Covidien has announced the completion of the separation of its pharmaceuticals division, a move that will allow the company to focus on its medical devices and medical supplies operations.

The pharmaceuticals business is now held by Mallinckrodt and will operate as an independent company under this name, pursuing its own strategic and operational plans.

Covidien announced plans to spin off its pharmaceuticals division in December 2011, in light of the distinctly different business models, sales channels, customers and capital requirements it possesses in comparison to the core business.

Jose Almeida, Covidien's chairman, president and chief executive officer, said: "Covidien is well-positioned to deliver on its strategic initiatives, including broadening innovation focus, aggressively managing its portfolio, capitalising on emerging markets opportunities and optimising spending to provide for investments in innovation and growth."

Mallinckrodt's first full fiscal year as a standalone business will end on September 27th 2013, with the firm expected to generate between seven and 11 percent net sales growth during this period.