Mallinckrodt PLC
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Can Valeant’s Margins for 2Q16 Meet Expectations?
During 4Q15 and 1Q16, Valeant Pharmaceuticals’ (VRX) net margin turned negative. That followed its struggling high-margin dermatology products and the foreign exchange impact.
Endo International’s and Mallinckrodt’s EPS Growth Expectations
In its fourth-quarter investor presentation, Endo International (ENDP) guided for adjusted diluted EPS and adjusted EBITDA of $2.00–$2.25 and $1.24 billion–$1.34 billion, respectively, in fiscal 2019.
Why Wall Street Has Mixed Opinions on Mallinckrodt
Wall Street analysts expect upside potential of 35.45% for Mallinckrodt (MNK), based on the company’s closing price on March 22.
Adage Capital adds a new position in Mallinckrodt
Adage Capital added a new position in Mallinckrodt Plc (MNK) in the third quarter of 2014. The position accounted for 0.82% of the fund’s total portfolio.
What Does Valeant’s Institutional Ownership Look Like?
Of its total outstanding shares, Valeant Pharmaceuticals’ (VRX) institutional ownership stood at 69.2%.
Stronger Dollar Hampers US Trade Balance; SPY Falls 1.15%
According to the US trade balance report, the US trade deficit widened to $51.37 billion in March against an expected $41.7 billion. March is the largest monthly widening since 1996.
Inside Mallinckrodt’s Major Valuation Catalysts
Acthar is Mallinckrodt’s (MNK) leading product, and the company plans to achieve mid-single-digit to low-double-digit growth for the drug in fiscal 2016.
The US Economy: Fischer and Brainard Weigh In
Stanley Fischer expressed his views on the US economy at the G30 Annual International Banking Seminar on October 11. This came three days after the dovish minutes of the FOMC September meeting.
Is Valeant a Good Bet on a Price-to-Earnings Basis?
On August 11, 2016, Valeant Pharmaceuticals (VRX) was trading at a forward PE (price-to-earnings) multiple of ~3.0x.
What to Expect from Valeant’s Upcoming Q216 Earnings
Wall Street analysts anticipate that Valeant will record $2.47 billion and $2.54 billion total revenue for 2Q16 and 3Q16, respectively.
Yes, There Will Be Margin Erosion for Valeant in 2017
Of its three businesses, Bausch & Lomb’s share in Valeant Pharmaceuticals’ (VRX) overall EBITA (earnings before interest, tax, and amortization) was 32%.
Analyst Ratings for Endo International and Peers in August
In the second quarter, Endo International (ENDP) reported revenues of $715 million, which is a YoY decline of 18.4%.
How Did Valeant Fare in 2Q16?
Valeant Pharmaceuticals (VRX) announced earnings for 2Q16 on August 9, 2016.
Magnetar decreases stakes in American Airlines
Magnetar reduced its position in AAL in the third quarter. The position accounts for 1.17% of the fund’s total portfolio in the third quarter.
Citron Research Tweet Pulled NVIDIA Prices Lower on December 28
The S&P 500 Information Technology sector fell 0.87% on December 28. NVIDIA (NVDA) and First Solar (FSLR) were the top losers.
Projected Revenue for Valeant in 2017
Valeant Pharmaceuticals (VRX) has been keeping an eye on the progress of its dermatology and gastrointestinal portfolio.
Quest Gains after Acquisition of Clinical Laboratory Partners
Quest Diagnostics (DGX) gained 2.9% on March 1, 2016, as it announced the completion of Outreach Laboratory
How Is Valeant Trading at a Discount on PE Basis?
On March 16, Valeant Pharmaceuticals was trading at a forward PE multiple of 2.94x. This appears to be a significant discount compared to peers.
SPY Falls 2.51% on Global Uncertainty
The SPDR S&P 500 ETF (SPY) fell by 2.51% on Monday, September 28, 2015, while the Direxion Daily S&P 500 Bull 2X ETF (SPUU) fell by 4.95%.
Why dividend recapitalization is the sweet spot for leveraged loans
While M&A activity was still below market prospects, demand for dividend recapitalization deals was mostly strong last week.
What Do Analysts Recommend for Valeant after Recent Happenings
The consensus 12-month target price for Valeant Pharmaceuticals is $36, which translates to a ~77.3% return potential compared to Valeant’s closing price of $20.3 on November 2, 2016.
Understanding Mallinckrodt’s Impressive Revenue and Earnings in 2Q16
Wall Street analysts expected Mallinckrodt’s revenues for fiscal 2Q16 to be ~$871.5 million, but Mallinckrodt surprised them with sales of $918 million.
The Many Reasons Mylan Is So Keen to Acquire Perrigo
On April 21, 2015, Teva (TEVA) launched a proposal to acquire Mylan for $82 a share in a 50% cash, 50% stock deal worth $43 billion. Mylan rejected the offer.
Inside the Double-Digit Fall for Mallinckrodt’s Specialty Generics Business in 2016
Specialty Generics’ contribution to Mallinckrodt’s net sales fell by 18% to $1 billion in 2016. The business had a 31% share in total net sales in 2016.
Central Nervous System Is Key to Teva’s Specialty Medicines
Revenues for Teva’s (TEVA) Specialty Medicines segment grew by 2.1% to $8,560 million in 2014, from $8,388 million in 2013.
What Valeant’s EV-to-EBITDA Multiple Means
Valeant Pharmaceuticals was trading at a forward EV-to-EBITDA multiple of 5.64x on March 16. This looks to be a huge discount when compared peers.
A Look at Mallinckrodt’s Operating Segments
Mallinckrodt (MNK) is a specialty pharmaceuticals company that relies on volume-driven growth. Let’s discuss the performances of its three segments.
ETFs Capitalize on the Generic Industry’s Growth
ETFs are the investment funds—like index funds and mutual funds—that track an index, a commodity, or a basket of assets. ETFs are publicly traded on an exchange.
Analyzing SPY’s Stocks, Noble and ENSCO Rose
On December 15, the stocks at the top of the SPDR S&P 500 ETF (SPY) were ENSCO (ESV), Noble (NE), and Mallinckrodt (MNK). ENSCO rose by 8.0%.
Mallinckrodt Was the S&P 500’s Top Gainer on May 26
Mallinckrodt Pharmaceuticals, which produces specialty pharmaceutical products such as generic drugs and imaging agents, surged to a ten-day high on May 26.
Overview: Assessing Elliott Management’s 2Q14 positions
Paul Singer’s Elliott Management, a New York hedge fund, disclosed new positions in a 13F filed this month. In this series, we’ll discuss some of the notable positions the $24 billion activist fund traded in the second quarter of 2014 (or 2Q14).
How Mallinckrodt’s Specialty Brands Performed in 2Q16
Mallinckrodt’s Specialty Brands segment earned $535 million during fiscal 2Q16 and includes Acthar, the lead drug, as well as other drugs.
JANA Partners opens new positions in MNK, OUTR, NWSA, and HUN and sells HMA and AET—13F Flash B
JANA Partners LLC is a value-oriented investment advisor specializing in event-driven investing exclusively for qualified investors. Why buy Outerwall Inc. (OUTR)?
A key overview of Adage Capital’s holdings in 3Q14
Adage Capital’s US long portfolio grew from $38.69 billion in 2Q14 to $40.2 billion in 3Q14. The portfolio comprised around 699 stocks.
Kinder Morgan’s position with Adage Capital eliminated
Adage Capital exited a position in Kinder Morgan Inc (KMI) in the third quarter. The position accounted for 0.37% of the fund’s total 2Q portfolio.
Citigroup gets raised position with Adage Capital
Adage Capital raised its position in Citigroup Inc. (C) in the third quarter. The position accounted for 0.98% of the fund’s total 3Q portfolio.
Adage Capital raises its position in NiSource
Adage Capital raised its position in NiSource Inc. (NI) in the third quarter. The position accounted for 0.52% of the fund’s total 3Q14 portfolio.
What Could Drive Mallinckrodt’s Growth in Fiscal 2019
In fiscal 2018, Mallinckrodt’s (MNK) revenue fell 0.19% YoY (year-over-year) to $3.22 billion.
How Endo’s and Mallinckrodt’s Expense Control Stacks Up
In its fourth-quarter investor presentation, Endo International (ENDP) guided for its fiscal 2019 adjusted operating expenses as a percentage of revenue being 24.5%–25.0%.
Comparing Endo’s and Mallinckrodt’s Revenue Forecasts
In its fourth-quarter investor presentation, Endo International (ENDP) guided for fiscal 2019 revenue of $2.76 billion–$2.96 billion, representing a low single-digit percentage YoY (year-over-year) decline.
Analysts’ Views on Endo International and Mallinckrodt
Most analysts covering Endo International (ENDP) and Mallinckrodt (MNK) recommend “hold.” On March 5, Endo closed at $8.72, and Mallinckrodt closed at $22.39.
How Is Salix Pharmaceuticals Positioned in November?
Bausch Health’s (BHC) wholly owned subsidiary Salix Pharmaceuticals generated revenues of $460.0 million in the third quarter compared to $452.0 million in the third quarter of 2017.
Baxter International Completes Its Mallinckrodt Assets Buy
Baxter (BAX) announced the completion of its acquisition of Recothrom and Preveleak assets from Mallinckrodt for $185.0 million.
How Mylan’s North America Segment Performed
The North America segment reported a growth of 22% to $1.6 billion during 4Q16 from $1.3 billion during 4Q15.
Performance of Incyte’s Jakafi in the United States
Revenues for Jakafi rose more than 42.0% to $852.8 million in 2016, from $601.0 million in 2015.
How Did Mallinckrodt’s Specialty Brands Perform in 2016?
Specialty Brands had a 69% in Mallinckrodt’s total revenue in 2016, while Specialty Generics had a 31% share.
Mallinckrodt’s Revenue Growth in Fiscal 4Q16
On an annual basis, MNK’s net sales soared by 16% to $3.4 billion in 2016. Despite its better-than-estimated performance, shares fell by 9% on November 29.
Mallinckrodt’s Greater Dependence on Acthar and Generic Business
Mallinckrodt (MNK) has recently been making news due to its business model being questioned. A Citron Research report focused on the sustainability of Acthar’s higher level of exposure to government-oriented franchise.
Understanding Acthar’s Contribution to Mallinckrodt’s Top Line
In 1Q16, Acthar earned $286.7 million for Mallinckrodt, reflecting a YoY jump of 7.6%. It accounted for 31% of the company’s total revenues in that quarter.
Why Mallinckrodt Is Trading at a Discount on PE Basis
On March 21, Mallinckrodt was trading at a forward PE multiple of 6.40x—an apparent discount compared to Johnson & Johnson and Teva.
Where Else Have We Seen Mallinckrodt’s ‘Acquire to Invest’ Strategy?
The business strategies of both Mallinckrodt and Valeant reflect what the former refers to as “Acquire to Invest.”
Valeant Looks to Line Its Coffers Using These Five Strategies
To boost profitability and share prices, Valeant plans to focus on five strategic imperatives to help it pose stronger competition to ENDP, MNK, and GILD.
Valeant Looks to Boost Profit Margins through the Walgreens Deal
On December 15, 2015, Valeant Pharmaceuticals (VRX) announced its decision to enter into a fulfillment agreement with Walgreens.
Why Teva and Regeneron Entered Collaboration Agreement
On September 20, 2016, Regeneron Pharmaceuticals (REGN) entered a collaboration agreement with Teva Pharmaceuticals (TEVA).
How StrataGraft Could Benefit Mallinckrodt’s Hospital Portfolio
StrataGraft, if approved, will be the first biological off-the-shelf skin substitute for treating severe burns.
What’s behind Mallinckrodt’s Stratatech Acquisition?
Stratatech is a regenerative medicine company with a focus on the development of proprietary skin substitute products.
Can Mallinckrodt Expand Its Margins?
Wall Street analysts expect Mallinckrodt’s (MNK) net margin to jump to 24.3% in 3Q16 from 10% in 3Q15.
The Truth behind Horizon’s EV-to-EBITDA Performance
On June 29, 2016, Horizon Pharma was trading at a forward EV-to-EBITDA multiple of 4.67x, which is at a discount when compared with peers.
Inside Neurocrine Biosciences’ Analyst Recommendations in 2016
Based on the recommendations of eight brokerage firms, a Bloomberg survey reported that 100% of analysts gave Neurocrine Biosciences “buy” recommendations.
What Are the Additional Labels for Alexion’s Soliris?
Soliris is Alexion’s leading drug. It was approved for paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome in 2007 and 2011.
The Facts behind the Valeant Drug Pricing Controversy
Valeant Pharmaceuticals International (VRX) significantly raised the prices of two of its heart drugs—Nitropress and Isuprel—which caused a controversy and an outrage.
What Happened in the Valeant-Philidor Controversy?
Valeant’s (VRX) controversies started with Philidor, a specialty pharmacy company that was accused of altering doctor’s prescriptions so it could sell more of Valeant’s costly drugs.
Valeant: The Rise and Fall of a Giant Specialty Pharmaceutical
Much of Valeant’s growth was coming from price increases rather than volume gains, and that wasn’t sustainable. The company’s steep price increases came under regulator scrutiny.
Medivation: Xtandi Global Sales Rose 53% in 1Q16
Xtandi is Medivation’s (MDVN) only commercialized asset. During the first quarter of 2016, the drug recorded revenue of $547.2 million.
What’s Driving Growth for Mallinckrodt’s Acthar?
Acthar is Mallinckrodt’s (MNK) lead drug, which fetched $248.4 million, or 46%, of total sales for the company’s Specialty Brand segment.
What to Expect from Mallinckrodt’s Specialty Generics Business
The total contribution from Mallinckrodt’s Specialty Generics segment in fiscal 2Q16 stood at $264.4 million, which represents a 27% YoY decline.
Defitelio: Volume and Pricing Challenges
Jazz Pharmaceuticals’ Defitelio is the first and only approved treatment that increases survival in VOD patients with multi-organ dysfunction (or MOD).
XLV Mid-Cap Stocks: Why Mallinckrodt Fell Due to Profit-Booking
Mallinckrodt (MNK) fell by 4.5% due to profit-booking. It closed at $58.40. The stock remained volatile on the backdrop of Valeant’s (VRX) episode.
How Has Shire Benefited from NPS Pharmaceuticals Acquisition?
In February 2015, Shire (SHPG) completed its acquisition of NPS Pharmaceuticals for $5.2 billion. Through the merger, Shire gained access to Gattex and Natpara.
Shire’s Acquisition Gives It Natpara and Gattex
Gattex is the first and only analog of glucagon-like peptide-2 (or GLP-2) indicated for short bowel syndrome. The drug is known as Gattex in the United States and Revestive in Europe.
Neurocrine Biosciences’ Valbenazine Launch: What You Need to Know
Neurocrine Biosciences (NBIX) expects to submit a new drug application to the FDA for Valbenazine in 2016.
How Horizon Became a Growth Stock
Over the past 18 months, Horizon Pharma has acquired three orphan drugs. The acquisition of Hyperion Therapeutics in May 2015 gave it Ravicti and Buphenyl.
Why Is Horizon Trading at a Premium on a Price-to-Sales Basis?
On March 24, Horizon Pharma was trading at a forward PS multiple of 2.18x. It appears to be trading at a premium next to Valeant, Mallinckrodt, and Endo.
Rare Disease Portfolio Helped Sanofi to Offset Falling Diabetes Sales
Genzyme, a subsidiary of Sanofi (SNY), holds rare disease, multiple sclerosis, oncology, and immunology disease drugs in its portfolio.
XLV Mid-Cap Stocks Witness Profit-Booking
The mid-cap stocks of the Health Care Select Sector SPDR ETF (XLV) fell collectively by 2.6%. They underperformed XLV as of March 8, 2016.
BioMarin’s Vimizim Sales Were up by 195% in 2015
Vimizim contributed 26% to the top line of BioMarin Pharmaceutical in 2015. Meanwhile, the number of patients on Vimizim rose by 10% during 4Q15 over 3Q15.
Healthcare Stock Mallinckrodt Emerged as One of the Top Stocks
The stocks at the top of the SPDR S&P 500 ETF on December 30, 2015, were Allegheny Technologies (ATI), Mallinckrodt (MNK), and Tesoro Corporation (TSO).
Eli Lilly Drags Down XLV’s Pharmaceutical Subgroup
Eli Lilly (LLY) was the worst performer within the pharmaceutical subgroup as well as within XLV with a return of -3.0% on December 9, 2015.
Which Stocks Are at the Top of SPY?
The stocks at the top of the SPDR S&P 500 ETF (SPY) on November 27 were Avon Products (AVP), Kroger (KR), and Endo International (ENDP).
Tyson Foods (TSN) Leads SPY on Quarterly Gains
On November 23, Tyson Foods (TSN) closed at $48.09, which is well above its 100-day, 50-day, and 20-day moving averages of $44, $44, and $45, respectively
J.M. Smucker Led the SPY ETF with a 7.0% Gain
J.M. Smucker posted EPS of $1.62, beating the consensus estimate of $1.52. It also reported net sales of ~$2.1 billion, in line with the market expectation.
Anacor: Top Performer among Mid-Cap Stocks
Anacor has a market cap of ~$4.63 billion, with a YTD return of 225.6% as on November 12. The company’s peers include Allergan and Mallinckrodt Public.
Weyerhaeuser on Its Way to Acquire Plum Creek Timber
Stocks at the top of the SPY ETF on November 9 were Plum Creek Timber, Apache, and Norfolk Southern. They gained 17.3%, 13.2%, and 11.0%, respectively.
Healthcare and Technology Stocks Weigh Down SPY
The technology sector fell by 0.26% on October 20. Giant tech companies’ stocks fell including Micron Technology, Western Digital, Google, and IBM.
Introducing Liquidity: Must-Know Ins and Outs
Liquidity, or “financial market liquidity,” refers to the ease with which you can buy or sell a security in financial markets at minimal cost.
High Yield Bond Funds See Inflows after 2 Weeks of Outflows
Investor flows in high yield bond funds turned positive last week after two successive weeks of outflows.
Frontier Communications Was the Highest Issuer of Junk Bonds
Junk bond issuers came back to the primary market in the week ended September 11, 2015, after two weeks of no issuance.
PerkinElmer and Mallinckrodt Help Bottom Ten Stocks in XLV
PerkinElmer (PKI) with a return of 5.94% was the best performer of XLV’s bottom ten stocks.
Why Teva’s Generic Medicines Profitability Improved in 1Q15
Teva’s increased profitability for its generic medicines was partially offset by decreased profitability of its specialty medicines, which were down by 13% in 1Q15 from 1Q14.
Teva 1Q15 Earnings Preview: Profitability Drivers
Teva plans to reduce the cost per tablet unit from $15 to $10. It’s shifting manufacturing operations to low-cost areas to improve product profitability.
High-Yield Bond Funds See Inflows Pick Up Pace in April 10 Week
The largest issuers of high-yield bonds in the primary market last week were Fiat Chrysler Automobiles, GM Financial, and Mallinckrodt International.
Fiat Chrysler, GM Financial Issue Largest Bonds in April 10 Week
Investors showed interest in high-yield bonds in the week ended April 10. Fiat Chrysler issued B2/BB- rated junk bonds worth $3 billion.
High-Yield Debt Issuance Gathers Steam in Week to April 10
In the week to April 10, junk bonds, or high-yield debt issuers, returned to the primary market. It was the same week the FOMC released its March 2015 meeting minutes.
Magnetar Capital Raises Its Stake in Actavis
In the fourth quarter, Magnetar increased its exposure to Actavis. It bought 42,107 shares in the pharmaceutical firm. It represents 1.5% of the fund’s 4Q14 portfolio.
Teva’s Risk Exposure in a Dynamic Environment
Teva operates in a dynamic environment with a number of risks that could have a material adverse effect on the company.
Why Teva’s Business Model Is Progressively Evolving
Teva intends to target a minimum annual profit of $4.3 billion, or $5 EPS, through 2016. To achieve this, Teva is reorienting its business model.
Actavis Focuses on Complex Generics and Para IV Filings
In January 2015, Actavis launched a generic specialty injectable portfolio, containing ~20 products across its therapeutic segments in the US.
How Actavis and Allergan Merger May Boost Branded Business
Actavis intends to invest ~$1.7 billion in R&D annually. It expects to add ~15 projects in near- and mid-term development to the company’s product pipeline.
Adage Capital adds stake in Duke Energy
Adage Capital added a new position in Duke Energy in the third quarter. The position accounted for 0.20% of the fund’s total 3Q portfolio.
TRW Automotive Holdings is Adage Capital’s new position
Adage Capital added a new position in TRW Automotive Holdings, which accounted for 0.32% of the fund’s total 3Q14 portfolio.
