=Mallinckrodt (MNK) : Stock plummets as major opioid trial nears

Mallinckrodt stock plummeted Thursday on a report the pharmaceutical company could restructure to contend with legal action stemming from the opioid crisis.

Meanwhile, shares of other pharmaceutical companies tied to the opioid crisis also fell. Teva Pharmaceutical (TEVA) lost 5.4% to 6.79 as Endo (ENDP) crumbled 17.2% to 2.10.

The trio is among a cadre of pharmaceutical companies facing accusations they overstated the benefits of opioids and understated their risks. This led to thousands of deaths and addictions in the U.S. — a phenomenon known as the opioid crisis.

Mallinckrodt reportedly hired restructuring advisors to help limit its potential liabilities, people familiar with the matter told Bloomberg. The pharmaceutical company could explore a bankruptcy to contain a payout potentially in the billions of dollars, the sources said.

Mallinckrodt stock has been particularly hard-hit for its alleged role in the opioid crisis. At their peak in mid-2015, shares of the pharmaceutical company traded close to 130. Likewise, Teva stock topped out around 70 in mid-2015. That year, Endo stock almost reached 90.

In October, a jury will examine roughly 1,600 claims related to the opioid crisis. Pharma companies Allergan (AGN) and Endo have already settled cases with two counties in Ohio for a respective $5 million and $10 million. Privately held Purdue Pharma is reportedly considering a settlement around $10 billion to $12 billion.

Mallinckrodt is also reportedly negotiating a deal, people familiar with the matter told Bloomberg. To make matters more complicated, the pharmaceutical company had $5.35 billion in debt as of June 28. On Aug. 28, the company borrowed $95 million as part of a revolving loan worth $900 million.

That credit line is now fully tapped out. The loan will come due in February 2022.

-=Mallinckrodt plc (MNK) reported earnings on Tue 7 Aug 2018 (b/o)

Mallinckrodt plc beats by $0.30, beats on revs; raises FY18 EPS above consensus 

• Reports Q2 (Jun) earnings of $1.78 per share, excluding non-recurring items, $0.30 better than the Capital IQ Consensus of $1.48; revenues rose 5.3% year/year to $631.7 mln vs the $620.12 mln Capital IQ Consensus. 
• H.P. Acthar Gel (repository corticotropin injection) net sales were $293.2 million, an 8.2% decrease over $319.4 million, resulting from the residual impact of previously reported patient withdrawal issues. INOMAX (nitric oxide) gas, for inhalation, net sales were $131.0 million, up 4.4%, over $125.5 million, due to continued strong demand. OFIRMEV (acetaminophen) injection net sales were $85.6 million compared with $75.7 million, an increase of 13.1%, benefiting from continued strong demand. 
• Co issues upside guidance for FY18, raises EPS to $6.50-6.90 from $6.00-6.50, excluding non-recurring items, vs. $6.23 Capital IQ Consensus Estimate; raises sales to +4-7% from +3-6%.
• "We look forward to further H.P. Acthar Gel data updates in coming quarters supporting our efforts to ensure appropriate patient access. Likewise, across our development portfolio we continue to make progress and look forward to other upcoming data reports, including the anticipated readout of VTS-270 top-line results in the near term."

Earnings this week : Aug 6 - 10, 18 (wk 32)

Notable earnings out this week

Monday (August 6)

• Morning: CTB  BID CAH NWL  SEAS TSN 
• Afternoon: CDEV ETSY HTZ MAR MOS  RNG Z  ZG  TWLO TLND WTW  AEL AKCA AMRS ANDV ANDX ANSS APLE ARNA ATSG AVD AWR BHF BKD BKH BRKS BWXT CBT   CMP CPE CRY CRZO CVCO DCO DPLO DVAX EDIT   EVBG FATE FIVN FRGI FRPT  HHC   ITRI KMT KRNT LGND LMNX     MTSC MTW MWA MXWL NCMI NGHC NPTN NSA NVGS OAS OFIX OTTR PI PLOW PLYA RBC REN   RPD SNHY SYKE TCMD THC  TRTX TUSK  WMC  ZGNX 

Tuesday (Aug 7)

• Morning:  ACM AES AFI AMRC ANIP AQUA ARMK ATKR AVNS AYR BHC BIOS BLD BOLD BR CEVA CORE CROX DEA DF DISCA DNR DQ EGN EGRX EMR EPC EXPD FSS GSKY GTN HAE HLNE HZN IIVI IONS JELD LABL LGIH LPX MGP MNK NHI NJR NS NWN ODP OMI ONCE ONDK PPL PRIM QNST RDUS RHP SAGE SATS SN SNH SPNS TAST TDG TECH TGH TGNA TRS USAC USCR VGR VPG VSH VSM XRAY ZBRA 

• Afternoon:   AAOI  AAXN AIZ ALB ALRM AMBR ANDE ARA BECN BIO BLDR BOFI BOOT BTG CAR CARG CBLK CGBD CIVI CLR CSOD CUTR CWH CYBR DCP DDD DHT DIOD DIS DK DXC DXPE ENV ESE EVH EVRI FGEN FOSL FTK G GCP GWPH HALO HCKT HDP HST ICHR IFF INFN INGN INSP IOSP IPAR IVC IVR JAZZ KAR KRO LC LRN MMI MODN MTCH MXL NEWR NNI NP NVTA OPK ORA PAA PAGP PBPB  PE  PEN PLT POWL PRA PRAA PRI PRMW PRSC PTCT PUMP PXD PZZA QDEL QTWO RLJ RWT SFLY SIEN SNAP SRC SUPN SWX TPC TPIC TRHC TWNK TWO VSLR WEN WK WRD XEC XOG 

Wednesday (Aug 8)

• Morning:   ATHM   CARS CBB CHH CLNY CNDT CNK CRL CSTE CUB CVS DEPO DLPH EBIX ENDP ETM EXTR FI FRTA GEL GOGO GVA HRI HZNP ITG JLL KDP KELYA KORS LAMR LITE LXP MGA MIDD MYL NOVT NXST NYT SBGI SINA  SO STE STWD SUP TGI TLRA TPB TRI WAAS WB WWW WYND

• Afternoon: ACAD ACTG ADT AINV AMBC AMPH ANGI AOSL APEI ATO AVT AYX AZPN BKNG BREW BV CISN COLL CPA CTL CVNA CXW DAR DNB DOOR ECPG ELF ENS EQIX ETE ETP EVRG FANG FG FLO FLS FNV FOXA FSM GBDC GDOT HPR IAC IAG INSY JACK KAMN KIDS LASR LOPE MBI MELI MFC MNST MRAM MUR NEU NKTR NNBR NTES NTRA NUAN NVAX OCLR ORIG OSUR OUT OXY PAAS PDCE PEGA QHC RGLD ROKU RPT SAIL SD SEMG SENS SGMO SJI SLF SRPT SUN TCX TIVO TTGT UHAL UPLD VNOM VRTU WMGI XPER YELP ZTO

Thursday (Aug 9)

• Morning:   BAM BPMP CABO CCE CDAY DDS DSKE FBM GCI GOOS HIMX HL HPT IMOS KOP LAUR LNG LOXO MMS MNTA MPAA NCLH NICE NOMD OGE PEGI PLUG PQG PRGO PRTY PTLA RDNT SGRY SMI SND SNR SPH TRCO TTI UNT  UPL VIAB VRTV VSTO WBT WIN WMS WP

• Afternoon:  ACXM AIRG AL ALTR ASYS AVID AVLR BW CDNA  CHUY COLD CORT CYRX DBX ECOM  ELGX  EPAY FNKO FSCT ICUI INVH JAG JCOM LGF.A MCHP MIME NWSA OLED OMER OSTK  PBYI PCTY PLNT RBA RDFN ROAD RUN  SPPI SSRM SYNA  TRUE  TTD UNIT VSAT WOW WPRT WTTR XON

Friday (Aug 10)

• Morning:  AIT ERF MDP RUTH

-=Mallinckrodt (MNK) reported earnings on Tue 27 Feb 2018 (b/o)

Mallinckrodt plc beats by $0.32, beats on revs; guides FY18 EPS below consensus

• Reports Q4 (Dec) earnings of $2.01 per share, excluding non-recurring items, $0.32 better than the Capital IQ Consensus of $1.69; revenues fell 4.5% year/year to $792.3 mln vs the $769.91 mln Capital IQ Consensus. 
• Net sales for the Specialty Brands segment were $582.2 million for the quarter, compared with $603.1 million, a decrease of 3.5%, or 3.7% on a constant-currency basis. H.P. Acthar Gel (repository corticotropin injection) net sales in the quarter were $295.2 million, a 9.3%2 decrease over $325.4 million impacted by the previously disclosed patient withdrawal issues. The company has taken a number of steps to address the issue, including engagement with payers, prescribers and patients, and we remain focused on returning H.P. Acthar Gel to growth. INOMAX (nitric oxide) gas, for inhalation, generated net sales of $125.6 million, up 6.2%, or 6.1% on a constant-currency basis, over $118.3 million. OFIRMEV (acetaminophen) injection net sales were $78.0 million compared with $72.5 million, an increase of 7.6%.
• Co issues guidance for FY18, sees EPS of $6.00-6.50, excluding non-recurring items, vs. $7.14 Capital IQ Consensus Estimate. Driven by its ongoing transformation, Mallinckrodt will prospectively classify the "Specialty Generics Disposal Group" as discontinued operations, which includes the Specialty Generics segment, certain non-promoted branded products within the Specialty Brands segment, and the company's ongoing post-divestiture supply agreement. 

=Mallinckrodt (MNK) reported earnings on Tue 7 Nov 017 (b/o)

Mallinckrodt plc beats by $0.16, misses on revs 

• Reports Q4 (Sep) earnings of $1.97 per share, excluding non-recurring items, $0.16 better than the Capital IQ Consensus of $1.81; revenues fell 10.5% year/year to $793.9 mln vs the $808.93 mln Capital IQ Consensus.
• Net sales for the Specialty Brands segment were $591.4 million, -6.6%
• Net sales for the specialty generics segment in the third quarter decreased 21.1% to $189.1 million 

This week's biggest % winners & losers : Sept 4 - 8, 17 (wk 36)

The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Healthcare:INSM(30.04 +144.43%),NLNK(17.67 +126.83%),NH(4.12 +54.89%),ADAP(8.93 +35.71%), LBIO (7.3 +21.67%),BCRX(5.85 +17%),ITCI(21.39 +14.57%),RGNX(25.7 +13.47%),ABBV(85.34 +13.15%)
• Materials:FRTA(3.82 +14.37%),BMS(49.22 +13.54%)
• Industrials:NAV (38.89 +12.66%)
• Consumer Discretionary:RH(70.65 +45.64%),CONN(23.1 +18.77%),FRED(6.95 +14.5%),GPRO(10.26 +14%),CAB(60.93 +13.36%)
• Energy:MTRX(14.2 +16.87%),FRO(5.69 +13.8%)
• Utilities:EBR(6.33 +12.83%)

This week's top 20 % losers

• Healthcare:ALNY(73.69 -17.12%), CLLS(27.07 -15.88%), MNK(35.33 -14.19%),CLVS(67.17 -14.17%)
• Industrials:NCS(13.85 -17.31%),TRTN(31.87 -15.93%)
• Consumer Discretionary: AOBC(13.92 -15.74%)
• Information Technology:TRVG(10.96 -29.34%),LEJU(1.47 -19.23%),SAIC(61.06 -17.95%),KEM(20.44 -16.09%),HLIT(2.9 -14.71%)
• Financials:UVE(17.85 -17.17%),HRTG(9.37 -16.79%),AHL(38.15 -15.97%)
• Energy:SDRL(0.22 -22.82%),REN(24.28 -18.06%),CRZO(11.38 -16.81%)
• Telecommunication Services:GSAT(1.63 -18.5%)

Mallinckrodt (MNK): U.S. judge invalidates patents

  

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Sept 5 (Reuters) - A federal court in Delaware on Tuesday invalidated patents held by Mallinckrodt Pharmaceuticals on its Inomax respiratory treatment system.

The ruling came in a lawsuit brought by Mallinckrodt against specialty chemical company Praxair Inc, which sought to market a generic version of Inomax. The judge found Praxair did not infringe Mallinckrodt's patents.

Mallinckrodt (MNK) reported earnings on Tue 2 Aug 2016 (b/o)

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Mallinckrodt plc beats by $0.19, beats on revs; raises FY16 EPS guidance :

• Reports Q3 (Jun) earnings of $2.20 per share, excluding non-recurring items, $0.19 better than the Capital IQ Consensus of $2.01; revenues rose 0.6% year/year to $970.6 mln vs the $921.82 mln Capital IQ Consensus.
• Co raises guidance for FY16, sees EPS of $8.50-8.80 (prior $8.15-8.50), excluding non-recurring items, vs. $8.28 Capital IQ Consensus Estimate.

Mallinckrodt (MNK) reported earnings Mon 23 Nov 2015 (before open)

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** charts after earnings **

  

Mallinckrodt plc beats by $0.08, beats on revs :

• Reports Q4 (Sep) earnings of $1.84 per share, $0.08 better than the Capital IQ Consensus of $1.76; revenues rose 31.0% year/year to $882.4 mln vs the $869.41 mln Capital IQ Consensus.
• Looking ahead to fiscal 2016, the High-Flux Reactor in the Netherlands, a primary supplier for the Nuclear Imaging segment, is experiencing an unplanned shutdown due to a mechanical issue. This outage is expected to negatively impact Mallinckrodt's operating income by $10.0 to $15.0 million in the first quarter of fiscal 2016, but somewhat less impact is expected in future quarters as the reactor is expected to return to full production in the first half of fiscal 2016.
• The company's cash position on September 25, 2015 was $365.9 million, an increase of $140.6 million from June 26, 2015 despite use of $75.0 million to repurchase shares in the fourth quarter. Overall total company full-year operating cash flow was $896.4 million.