Mallinckrodt Suspends Spin-off of Specialty Generics BusinessBy
Mallinckrodt, a specialty pharmaceutical company, has announced the company is suspending for now its previously announced plans to spin off its specialty generics business into a stand-alone company based on current market conditions and developments, including increasing uncertainties created by opioid litigation.
Mallinckrodt first announced in December 2018 plans to create two independent, publicly traded companies: one focused on innovative specialty branded pharmaceuticals and the other concentrated primarily in specialty generic products and active pharmaceutical ingredient manufacturing.
“Mallinckrodt’s long-standing goal remains to be an innovation-driven biopharmaceutical company focused on improving outcomes for underserved patients with severe and critical conditions,” said the company in its second-quarter 2019 earnings statement released August 6, 2019. “However, based on current market conditions and developments, including increasing uncertainties created by the opioid litigation, the company is suspending for now its previously announced plans to spin off the Specialty Generics company. Mallinckrodt continues to actively consider a range of options intended to lead to the ultimate separation of the Specialty Generics business, consistent with its previously stated strategy.”