Mallinckrodt up 11% premarket on potential of iNO in COVID-19

Mallinckrodt (NYSE:MNK) bucks the broad market’s bearishness, up 11% premarket, albeit on modest volume.

This morning, it announced that it’s evaluating “limited published evidence” that inhaled nitric oxide (iNO), marketed as INOmax, may be useful as a supportive measure in COVID-19 patients with pulmonary complications.

It has engaged the FDA, NIH and BARDA on the matter, but cautions that the safety and efficacy of iNO for this use has not been established.

On the opioid settlement front, it reports that it has inked agreements with certain lenders and debt holders for a new $690M term loan, the proceeds of which will be used to redeem $615M of unsecured notes due 2020. It has also agreed to modify its existing credit agreement, increasing the interest rate by 1.0%, a step-up in amortization and the payment of a one-time 0.5% fee to lenders.

The $1.6B settlement will be paid as follows: $300M at closing, $200M on the first and second anniversary of closing and $150M on the third through the eighth anniversary of closing (reported yesterday). The previously announced issuance of warrants also remains unchanged.

https://seekingalpha.com/news/3550963-mallinckrodt-up-11-premarket-on-potential-of-ino-in-covidminus-19