Shares of Mallinckrodt (MNK) are sliding after The Wall Street Journal reported that the company begun confidential discussions with creditors and is considering placing its U.S. generic-drug business into bankruptcy to address coming debt maturities and liabilities stemming from the opioid crisis.
U.S. GENERICS UNIT BANKRUPTCY TALKS: Mallinckrodt has begun confidential discussions with creditors and is considering placing its U.S. generic-drug business into bankruptcy to address coming debt maturities and liabilities stemming from the opioid crisis, Alexander Gladstone, The Wall Street Journal's Jared Hopkins and Soma Biswas write, citing people familiar with the matter. The company is weighing a chapter 11 filing covering its U.S. generics business, hoping to resolve claims of state and local governments stemming from the cost of combating opioid addiction, sources told the Journal.
Mallinckrodt is among several opioid manufacturers and distributors set to go to trial next month over allegations brought by New York Attorney General Letitia James related to the marketing and distributing of opioids.
PRICE ACTION: In afternoon trading, shares of Mallinckrodt have dropped over 43% to $2.94. Also trading lower are Teva Pharmaceuticals (TEVA), Endo International (ENDP), Mylan (MYL), Cardinal Health (CAH), AmerisourceBergen (ABC), and McKesson (MCK).
Mallinckrodt
-1.995 (-38.93%)
Teva
-0.78 (-5.91%)
Endo
-0.33 (-5.43%)
Symbol now VTRS
-0.92 (-4.35%)
Cardinal Health
-1.05 (-1.76%)
AmerisourceBergen
-1.06 (-1.09%)
McKesson
-4.37 (-2.56%)