Mallinckrodt plc Reports Earnings for the Second Quarter 2020 and Highlights Pipeline AdvancementsDownload PDF
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Customers, Partners & Suppliers
Mallinckrodt Considering a Range of Options to Address Legal and Financial Challenges
On August 4, 2020, Mallinckrodt plc provided an update on its efforts to address the legal and financial challenges impacting the business.
Over the last two years, the Company has faced pressure from opioid litigation claims and, more recently, the retrospective one-time Acthar Gel Medicaid rebate liability. The Company has also been working to address its overall debt levels.
Mallinckrodt received an adverse ruling in the Acthar Gel Medicaid rebate calculation matter in March 2020, which is currently pending appeal. As a result of this ruling – and with the prospect of having a $640 million liability coming due this fall, the opioid litigation pressure and other risks, and our overall debt levels – Mallinckrodt has been considering a range of options with its advisors. This includes having discussions with a number of key stakeholders, including financial creditors and litigation plaintiffs and their advisors.
While no decision has been made regarding the Company’s path forward, these discussions could potentially result in a near-term voluntary filing for Chapter 11 reorganization by Mallinckrodt plc and the majority of its subsidiaries, including the Specialty Brands and Specialty Generics businesses.
In all scenarios the Company is contemplating – including a voluntary Chapter 11 filing by Mallinckrodt plc – all of Mallinckrodt’s businesses are expected to continue operating as they have been.
The Company has sufficient liquidity to continue executing on its business strategy and meeting its obligations to customers, vendors, partners and employees, and had approximately $818 million in cash as of June 26, 2020.
As the Company moves ahead, it is considering what is in the best interest of its key stakeholders, including customers and patients. Mallinckrodt remains committed to ensuring that patients have uninterrupted access to all of its medicines.
Daniel J. Speciale
Vice President, Investor Relations and IRO
Michael Freitag / Aaron Palash / Aura Reinhard
Joele Frank, Wilkinson Brimmer Katcher