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Monday, July 22, 2019

Mallinckrodt continues slide

Mallinckrodt (MNK -6.1%) slumps on modestly higher volume. Shares have sold off almost 30% in a month.
On Friday, it terminated its $250M receivables securitization facility after repaying $200M of borrowings. Bloomberg Intelligence’s Mike Holland says the elimination of cheap financing under the facility is a negative, adding that the company has now lost half of the ~$1B of liquidity it had at the start of the year.
Last week, it terminated a study of Acthar Gel in ALS due to a safety signal and uncertain efficacy.
SA Authors rate the stock Neutral as do Sell Siders.

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