Mallinckrodt will create separate operations for its API and generic drug production, the drugmaker announced this week.

The drugmaker expects to complete the spinoff by the second half of 2019. The division producing the remaining products will be renamed in the future.

The new generics company is expected to be headquartered in St. Louis. The remaining portion of the business will retain about 1,800 employees and focus on specialty drugs such as Acthar, an anti-inflammatory that has been the subject of pricing-related controversy.