Stuck on Staines

6 Aug 2019 By Robert Cyran Follow @rob_cyran

Mallinckrodt suspended a plan to spin off its painkiller business to shareholders. It was a too-transparent attempt to shield itself against legal liabilities from thousands of lawsuits. With falling sales, hefty debt, and a potentially big settlement looming, its future is grim.

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Mallinckrodt said on Aug. 6 it had suspended a plan to spin off its specialty generic drug business. The UK-based drugmaker cited current market conditions and increased uncertainties created by opioid litigation. Most of the unit’s revenue comes from pain killers.

The firm says it continues to study options for ultimately separating the business.

Mallinckrodt announced spinoff plans in December. It had previously tried to sell the division.

Mallinckrodt also reported revenue of $823 million in the second quarter, a slight decrease from the same period last year. The company lost 1 cent per share on continuing operations.

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