Mallinckrodt Calls Off Generics Subsidiary
Mallinckrodt Pharmaceuticals has suspended its plans for a specialty generics spinoff company, citing “current market conditions and developments, including increasing uncertainties created by the opioid litigation.”
Mallinckrodt was one of more than a dozen companies and individuals named in a lawsuit filed in 2017 by Multnomah County, Oregon, claiming injury and seeking economic damages related to manufacturing, marketing and distribution of opioids.
Mallinckrodt said it’s still considering “a range of options” that would ultimately separate the generics business line.
The company reported strong earnings in the first half of 2019, thanks to “solid operational performance” of its specialty generics and other products. Second quarter net sales for the specialty generics segment were $195.5 million, a slight increase over the same period last year.