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Feb. 25, 2020, 6:37 a.m. EST

Mallinckrodt's stock bounces after opioid-related settlement deal, earnings that beat expectations

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By Tomi Kilgore

Shares of Mallinckrodt PLC /zigman2/quotes/209283217/composite MNK -5.56% soared 15% in premarket trading Tuesday, after plunging 19% the previous session, after the drug maker announced a settlement agreement that would resolve all opioid-related claims. The company also reported fourth-quarter earnings that beat expectations. Under terms of the settlement deal, the plaintiffs would receive $1.6 billion in structured payments, including $300 million after Mallinckrodt's specialty generics business emerges from bankruptcy, $200 million on the first and second anniversaries of the emergence and $150 million on each of the third-through-eighth anniversaries of the emergence. Separately, the company reported a fourth-quarter net loss of $1.16 billion, or $13.76 a share, after a loss of $3.72 billion, or $44.64 a share, in the year-ago period. Excluding non-recurring items, such as a $1.64 billion expense associated with the settlement deal, adjusted earnings per share came to $2.40, above the FactSet consensus of $2.05. Sales fell 3.6% to $804.9 million but was above the FactSet consensus of $771.7 million, as specialty brands sales of $611.4 million and specialty generics sales of $193.5 million beat expectations of $579.7 million and $187.5 million, respectively. The stock has shed 80.7% over the past 12 months through Monday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.51% has gained 15.4%.

/zigman2/quotes/209283217/composite
US : U.S.: NYSE
$ 1.70
-0.10 -5.56%
Volume: 2.44M
April 3, 2020 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$143.15 million
Rev. per Employee
$869,081
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/zigman2/quotes/210599714/realtime
US : S&P US
2,488.65
-38.25 -1.51%
Volume: 3.59B
April 3, 2020 5:10p
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