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Mallinckrodt beats adjusted profit expectations, is in talks regarding possible bankruptcy filing
Shares of Mallinckrodt PLC rose 0.9% in premrket trading Tuesday, after the specialty pharmaceutical company swung to a large net loss, but reported an adjusted profit that beat expectations, while disclosing talks with creditors and litigation claimants regarding the possibility of a bankruptcy filing. The company reported a net loss of $933.1 million, or $11.04 a share, after net income of $6.8 million, or 8 cents a share, in the year-ago period. Excluding non-recurring items, such as a one-time Acthar Gel Medicaid rebate liability of $639.7 million, adjusted earnings per share came to $1.89, above the FactSet consensus of $1.34. Net sales fell to $166.5 million from $823.3 million. A one-time Acthar Gel Medicaid liability lowered sales by $534.4 million. In its business and litigation update, the company stated: "Due to pressures from the Acthar Gel Medicaid matter, the ongoing opioid litigation and the Company's existing debts and the related risk of non-compliance with its financial debt covenant over the next twelve months, the Company has been working with external advisors to explore a range of options and engage in dialogue with financial creditors and litigation claimants and their advisors, including the possibility of a filing for reorganization in bankruptcy under Chapter 11 by Mallinckrodt PLC and most of its subsidiaries in the near-term." The company said its cash balance at the end of the second quarter was $818.3 million and the revolving credit facility was fully drawn, while total principal debt outstanding was $5.29 billion. The stock has tumbled 31.5% over the past three months through Monday, while the S&P 500 has climbed 15.9%.
https://finance.yahoo.com/m/90d09dd...93/mallinckrodt-beats-adjusted.html?.tsrc=rss
Shares of Mallinckrodt PLC rose 0.9% in premrket trading Tuesday, after the specialty pharmaceutical company swung to a large net loss, but reported an adjusted profit that beat expectations, while disclosing talks with creditors and litigation claimants regarding the possibility of a bankruptcy filing. The company reported a net loss of $933.1 million, or $11.04 a share, after net income of $6.8 million, or 8 cents a share, in the year-ago period. Excluding non-recurring items, such as a one-time Acthar Gel Medicaid rebate liability of $639.7 million, adjusted earnings per share came to $1.89, above the FactSet consensus of $1.34. Net sales fell to $166.5 million from $823.3 million. A one-time Acthar Gel Medicaid liability lowered sales by $534.4 million. In its business and litigation update, the company stated: "Due to pressures from the Acthar Gel Medicaid matter, the ongoing opioid litigation and the Company's existing debts and the related risk of non-compliance with its financial debt covenant over the next twelve months, the Company has been working with external advisors to explore a range of options and engage in dialogue with financial creditors and litigation claimants and their advisors, including the possibility of a filing for reorganization in bankruptcy under Chapter 11 by Mallinckrodt PLC and most of its subsidiaries in the near-term." The company said its cash balance at the end of the second quarter was $818.3 million and the revolving credit facility was fully drawn, while total principal debt outstanding was $5.29 billion. The stock has tumbled 31.5% over the past three months through Monday, while the S&P 500 has climbed 15.9%.
https://finance.yahoo.com/m/90d09dd...93/mallinckrodt-beats-adjusted.html?.tsrc=rss
