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