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    Categories: Healthcare

Mallinckrodt announces $1.6 Bn deal to settle opioid lawsuits

Mallinckrodt, an Irish generic pharmaceuticals manufacturer, has recently announced its tentative $1.6 billion settlement of the opioid lawsuits. The framework of the agreement to resolve the opioid-related claims against the company has been approved by 47 states & the attorneys general of the United States territory. Through the settlement, the company will enter a court-supervised restructuring process to help secure the large payments.

Under the terms of the proposed agreement, the manufacturer of generic opioids is expected to make payments of $1.6 billion over a period of 8 years to the trust following the business’s emergence from Chapter 11 bankruptcy. Additionally, the plaintiffs will receive warrant options, for up to 19.99% of the company’s outstanding shares.

The company, for the past few months, has been taking a close look at bankruptcy to focus on introducing plans to help cover its mounting debts. The bankruptcy issue is expected to be resolved in coming years, with the company and its specialty brand subsidiaries playing no part in the process.

As per senior analyst at SVB Leerink, Fadia, Mallinckrodt has topped Q4 expectations by recording sales of $804.9 million as well as adjusted earnings of $2.40 per share. The sales of the company fell by 3.6%, while its earnings increased by 10.1% on a YOY (year-over-year) basis. Additionally, several generic pharmaceutical companies’ shares have popped after the recent lawsuit settlement as well as Perrigo gaining ANDA approval for the generic version of the inhaler.

Mallinckrodt has secured an additional $800 million loan for a term of four years, specifically targeting debts repayment. The recent amendment with its lenders will profit the opioid supply chain in a way that the loan proceeds will be used to repay the company’s senior notes of 4.875% that are due April 2020.

Mallinckrodt’s representatives declined to offer additional comments regarding the recent settlement deal.

Source credit:

https://www.investors.com/news/technology/generic-pharmaceutical-company-mallinckrodt-unveils-opioid-deal/
Saipriya Iyer:

Saipriya Iyer presently works as a content developer for decresearch.com and a couple of similar portals. Having dabbled with the domain of content creation for nearly half a decade, she now boasts of an enviable portfolio, holding substantial experience in penning down pieces related to technology, finance, and a wide spectrum of other industry verticals. A qualified computer engineering graduate from the University of Pune, Saipriya can often be found leveraging her knowledge of software technology and electronics in her write-ups. She can be contacted at- saipriya.i@decresearch.com | https://twitter.com/saipriya_i/

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