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Shares of Mallinckrodt PLC shot up 22% in afternoon trading Wednesday, enough to pace the NYSE's gainers, to stretch its gains for the week to 38%. Trading volume spiked to 15.7 million shares, nearly triple the full-day average of 5.3 million shares. The stock started rallying this week after Chief Financial Officer Bryan Reasons said at the J.P. Morgan Health Care Conference on Monday that the company could pay off its potential 2020 debt maturities, which is a "slightly over" $600 million, in cash. And regarding the dispute with the government over pricing for Acthar, he implied that he was optimistic regarding a favorable outcome, so there was no need to rush to settle. "Right now, we felt like the hearing went really well and we feel good about it," Reasons said, according to a transcript provided by FactSet. "So, we don't feel it's in our best interest to actually initiate the settlements." And regarding the opioid litigations, Chief Executive Mark Trudeau said he was "hopeful" that a resolution can be reached "sooner rather than later." The stock has more than doubled (up 110%) over the past three months, while the SPDR S&P Pharmaceuticals ETF has climbed 29.5% and the S&P 500 has gained 9.8%.
Mallinckrodt plc (NYSE: MNK), a global biopharmaceutical company, announced today that Mark Trudeau, President and Chief Executive Officer, and other members of management will represent the company at the 38th Annual J.P. Morgan Healthcare Conference at the Westin St. Francis on Union Square, 335 Powell St., San Francisco. Mallinckrodt is scheduled to present on Monday, Jan. 13, 2020 from 9:00 a.m. to 9:55 a.m. Pacific Time.
(Bloomberg) -- A much-feared economic recession failed to materialize in 2019, but there was no shortage of financial trouble for companies.The amount of corporate debt trading at distressed levels hit a new cycle high in November, according to Bloomberg Intelligence. That $127 billion -- the most since August of 2016 -- reflects a year of idiosyncratic blowups sparked by issues ranging from the opioid crisis in the U.S. to the growing influence of collateralized loan obligations and climate change.“Distressed funds are putting out fires everywhere,” said Jason Dillow, chief executive officer of Bardin Hill Investment Partners, which manages about $9.4 billion. “Heading into 2020 will be challenging for traditional distressed assets owned by managers now, but it will be a great opportunity for those who sit it out and buy after the drop.”Bloomberg recaps the biggest blowups of the year that may have put a dent in bonuses and looks at what investors can expect for distressed debt in 2020.McDermott International Inc.Debt load: About $5 billion, according to Bloomberg IntelligenceThe damage: Its 2024 bonds plunged to as low as 6 cents on the dollar, from nearly 97 cents in July.The engineering and construction firm’s stock and bonds collapsed in September as news that it had hired turnaround advisers surprised investors.McDermott, which provides services to energy companies, has secured a bridge loan while it tries to sell its Lummus Technology business. Lenders gave it additional capital in December, and some creditors agreed not to force payment on the interest they’re owed, but that break runs out on Jan. 15. Bondholders have seen about 97% of their value evaporate as bankruptcy remains a clear and present risk.“A more meaningful restructuring of McDermott’s liabilities, and potentially certain projects, is necessary to position the company for longer-term viability beyond just addressing its unsecured notes, in our view,” Joel Levington, a Bloomberg Intelligence credit analyst, said in a Dec. 3 note.Frontier Communications Corp.Debt load: $17.5 billionThe damage: The company’s bonds have dropped across the board, with its 8.5% notes due 2020 plunging from nearly 100 cents on the dollar to as low as 50 cents.With no meaningful debt maturities until 2022 and positive cash flow, the distressed telecommunications company was frequently thought of as a melting iceberg.But creditors in Frontier, which provides land-line service in rural areas, started pushing for the company to address its debt load. After months of public and private pressure, Frontier started negotiations, replaced its CEO and is said to be considering a restructuring in the first quarter.“If you’re stressed for a number of years, or you’re operating with a stressed balance sheet, you just have to hit a bump in the road that sends you to court,” said Christian Hoffmann of Thornburg Investment Management Inc., which oversees about $45 billion in assets.Intelsat SADebt load: $14 billionThe damage: Some of the company’s bonds hit their lowest level in more than a year, and are trading at levels that suggests bondholders may not be paid back in full.One of the hottest hedge-fund trades of the past year came crashing down in November when it emerged that the struggling satellite company’s plan to cut debt with proceeds from a proposed spectrum auction may not go as hoped.Investors had widely expected that the Federal Communications Commission would let Intelsat and its partners holding so-called “C-band” spectrum sell it through a private auction, which would net more proceeds for cutting Intelsat’s $14 billion of debt. Instead, the FCC said it would run a public process, and investors have to wait until 2020 to get clarity on what happens next.“With the control of the auction now in the hands of the federal government, the market is (rightly) questioning the extent to which Intelsat will be able to right-size its balance sheet and manage maturities in 2021,” CreditSights analysts David Shnaps and Jay Mayers wrote in a November note.“Intelsat remains a constructive participant in the complex C-Band proceeding,” Dianne VanBeber, a representative for Intelsat, said in an email. “As has been our practice, we will continue to proactively manage our capital structure.”Mallinckrodt PlcDebt load: $5.8 billionThe damage: Some of the company’s bonds have lost about 50% of their value this year.The pharmaceutical company has been embroiled in legal battles brought by states and municipalities claiming that Mallinckrodt and other opioid producers contributed to the deadly crisis.Mallinckrodt is also awaiting a decision in its lawsuit against the U.S. Department of Justice over reimbursement rates on its key product, Acthar Gel. In addition to the legal woes, Mallinckrodt operates under a debt-heavy capital structure, with impending maturities on its more than $5 billion of borrowings beginning in 2020.“How can they resolve their opioid liability, and will that require a filing?” Eric Axon, a health care analyst at CreditSights, said in an interview. “We are in the camp that they will ultimately require a filing.”A representative for Mallinckrodt pointed to previous comments made by the company’s chief executive officer that it has been trying to exit the opioid business.PG&E Corp.Debt load: $51.7 billion, including $30 billion in potential wildfire liabilities, as of the bankruptcy filing.The damage: Its shares have declined about 50% from a year ago and its bonds have been volatile.The California utility’s bankruptcy filing has been called a climate-change restructuring given the $30 billion of wildfire liabilities that pushed it into Chapter 11 in January.PG&E has grappled with twists and turns this year as it tries to get wildfire claimants, creditors, shareholders and politicians to agree on a plan by the June deadline to participate in a state wildfire fund set up to help settle future claims.A competing restructuring plan from heavyweight bondholders Pacific Investment Management Co. and Elliott Management Corp. only heightened the uncertainty around the case.PG&E this week scored a victory by winning court approval for two multibillion-dollar wildfire settlements that will serve as the centerpiece of the utility’s restructuring plan, but it still needs the support of California Governor Gavin Newsom.“Ultimately, we expect that PG&E’s plan will win out, though modifications to address Newsom’s comments likely mean it will be less beneficial for equity holders than originally envisioned,” Height Securities analyst Clayton Allen said in a research note.“We are committed to getting victims paid, continuing to implement changes across our business to improve our operations for the long term and emerging from Chapter 11 as a financially sound utility,” a representative for PG&E said in an emailed statement.Deluxe Entertainment Services Group Inc.Debt load: Over $1 billion pre-bankruptcy filing, around $300 million of liabilities post-bankruptcyThe damage: The media company’s first-lien loan dropped as much as 77 cents to 12.5 cents in the three month period leading up to the bankruptcy -- a loss of more than than $600 million.A post-production media services company for the film industry, Deluxe had struggled with a changing digital landscape in Hollywood and an increasingly burdensome debt load.When the company was looking for a loan to keep it afloat, its lenders, comprised mostly of CLOs, were prohibited from providing Deluxe more capital because of limitations on holding low-rated debt. Their hands were tied after the company was downgraded three notches to CCC- by S&P Global Ratings and Deluxe wound up in Chapter 11.There’s a “large gap” between where the debt trades and the value of the company’s assets once it’s restructured, which the market will see more of, according to George Schultze of Schultze Asset Management LP.Honorable MentionsWindstream Holdings Inc., California Resources Corp., Murray Energy Corp., Dean Foods Co. and Party City Holdco Inc. deserve honorable mentions on this list due to the velocity of their declines, some all the way to bankruptcy court.“Most of the biggest, publicized blowups for the year were pretty idiosyncratic in nature, and made that much worse because they were so large,” Carrie Benton, senior managing director and portfolio manager at CVC Credit Partners LLC, said in an interview.She forecast further distress in 2020, particularly in single B rated loans.“We’re seeing the fruits of the underwriting boom that occurred over the last several years in leveraged credit and a lot of the weaker documentation, which has allowed for there to be substantial leakage in documents for more leeway for what sponsors can do.”Representatives for McDermott, Frontier, Windstream, Deluxe, Murray Energy, California Resources and Dean Foods declined to comment. A representative for Party City didn’t respond to requests for comment.To contact the reporters on this story: Allison McNeely in New York at firstname.lastname@example.org;Katherine Doherty in New York at email@example.comTo contact the editors responsible for this story: Rick Green at firstname.lastname@example.org, Nicole Bullock, Boris KorbyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Mallinckrodt (MNK) initiates phase IV, multi-center, multiple-dose, open-label study to assess the effects of lead drug Acthar Gel as a therapy option in patients with severe keratitis.
Mallinckrodt plc (NYSE: MNK), a global biopharmaceutical company, today confirmed enrollment of the first patient in the company's Phase 4, multi-center, multiple-dose, open-label study to assess the effects of Acthar Gel as a therapy option in patients with severe keratitis1.
Mallinckrodt plc (NYSE: MNK), a global biopharmaceutical company, today announced plans to update Mallinckrodt's Incentive Compensation Clawback Policy and to develop and publish a report on the Board's oversight of risks related to the opioid crisis in the U.S. These actions are in response to the approval of related shareholder proposals presented at the Company's 2019 Annual General Meeting held on May 15, 2019.
Moody's Investors Service ("Moody's") downgraded Mallinckrodt International Finance SA's ("Mallinckrodt") Corporate Family Rating ("CFR") to Caa2 from Caa1. Moody's also downgraded the senior secured revolver and term loans to Caa1 from B2, the guaranteed senior unsecured notes to Ca from Caa2, and the unguaranteed senior unsecured notes to Ca from Caa3. Moody's also affirmed the Probability of Default Rating ("PDR") at Caa1-PD and appended it with an "/LD" designation.
Mallinckrodt plc (NYSE: MNK), a global biopharmaceutical company, today announced findings on the use of a novel predictive model designed to more quickly identify infants with infantile spasms (IS), a rare seizure disorder that typically occurs between three and seven months of age.1 The study results were reported in a poster presentation titled, "Clinical Pathways Leading to a Diagnosis of Infantile Spasms Using a Claims Database," (Poster 1.209) today during the 2019 Annual Meeting of the American Epilepsy Society (AES) in Baltimore.
Two St. Louis companies were involved in a couple of the 15 worst cooperate biotech deals of the past 10 years, according to FierceBiotech, a biotechnology news publication.
Mallinckrodt (MNK) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Mallinckrodt plc (NYSE: MNK) today announced (1) the final results of the previously announced offers by its wholly owned subsidiaries, Mallinckrodt International Finance S.A. and Mallinckrodt CB LLC (the "Issuers") to Eligible Holders (as defined below) to exchange (the "Exchange Offers") certain outstanding notes (collectively, the "Existing Notes") issued by the Issuers for new 10.000% Second Lien Senior Secured Notes due 2025 to be issued by the Issuers (collectively, the "New Notes") and solicitations of consents by the Issuers from Eligible Holders of each series of Existing Notes (other than the Existing 4.750% 2023 Notes) to Proposed Amendments (as defined below) to the indentures governing such Existing Notes (the "Consent Solicitations") and (2) the Existing Notes anticipated to be exchanged with the Issuers, separate from the Exchange Offers, pursuant to that certain exchange agreement, dated as of November 5, 2019 and subsequently amended on November 27, 2019, by and among Deerfield Partners, L.P., Deerfield Special Situations Fund, L.P. and Deerfield Private Design Fund IV, L.P. (such holders, the "Exchanging Holders") and the Issuers (as amended, the "Exchange Agreement").
J&J (JNJ) says that two third-party labs conducted 155 tests on samples of its baby powders. All these tests confirm that the talc does not contain asbestos, a known carcinogen.
Mallinckrodt plc (NYSE: MNK), a global biopharmaceutical company, announced today that the Company now will present at the Piper Jaffray Annual Healthcare Conference on Wednesday, Dec. 4, 2019 at 12:30 p.m. Eastern.
The stock prices of opioid drugmakers and distributors fell this week after news of a possible federal criminal probe, eroding many of the gains made in the weeks since a global settlement resolving opioid litigation was first announced.
Shares of companies caught up in the opioid litigation have risen recently, but a Wall Street Journal report appears to have reminded investors that the trouble could continue.
Benzinga Pro's Stocks To Watch For Wednesday Deere (DE) - The stock traded 4% lower in pre-market trading after the company guided FY20 agricultural sales down 5%-10%. The company said trade tensions ...
Shares of some manufacturers and distributors of opioid drugs decline on Tuesday following reports that a criminal probe has been initiated by federal prosecutors.
Pharmaceutical companies are in trouble over their role in fueling the opioid crisis facing the U.S. What Happened Federal authorities have launched a criminal investigation against the companies — using ...
Shares of the companies embroiled in opioid litigation fell in afternoon trading afterThe Wall Street Journal reported the federal government had opened a criminal investigation into some opioid makers and distributors, citing sources. Six companies have disclosed in regulatory filings that they have received grand-jury subpoenas from the U.S. attorney's office in the Eastern District of New York, according to the report. Teva Pharmaceutical Industries Ltd. is down 8%, Mallinckrodt 5%, Amneal Pharmaceuticals Inc. 10%, and Johnson & Johnson 1%. Shares of cited wholesale drug distributors also declined, AmerisourceBergen by 3% and McKesson by 5%. In addition, shares of companies facing opioid litigation but not cited in the Journal story also dropped, with Endo International down 9% and Cardinal Health 4%. In recent weeks, the stocks of these companies have rallied as investors took the view that the possibility of global settlement that would resolve all pending and future litigation was a positive.
Shares of generic drugmakers jumped Monday as speculation mounts about a series of legal settlements potentially nearing a resolution.
Mallinckrodt plc (NYSE: MNK), a global biopharmaceutical company, today announced findings from a large retrospective study of Acthar® Gel (repository corticotropin injection) in the treatment of the respiratory disease symptomatic sarcoidosis that assessed patient characteristics, treatment patterns, concomitant medication use and physicians' assessments of treatment response. The study examined medical records from 302 patients with advanced symptomatic sarcoidosis, the majority of whom had comorbidities and had previously been treated with corticosteroids. The analysis showed that the use of Acthar Gel was associated with improved overall health status in 95 percent of patients as reported by physicians' assessments, with more than half of patients (54 percent) seeing improvements in two or more symptoms. In addition, there was an association observed between the use of Acthar Gel therapy and reduced overall use of other medications. Results of the study were recently published online in Therapeutic Advances in Respiratory Disease, an online, open-access peer-reviewed journal.