Mallinckrodt suspends spinoff of specialty generics unit due to opioid litigation
Illustration: Aïda Amer/Axios
Mallinckrodt said Tuesday morning that it will suspend the planned spin-off of its specialty generics unit, which primarily makes opioid drugs, due to ongoing litigation.
Why it matters: It reflects how those who (allegedly) contributed to a public health crisis are now facing a public markets crisis.
The bottom line: "Mallinckrodt shares have fallen 60% this year on concern about the company’s possible exposure to litigation over the U.S. opioid crisis. ... Berenberg analyst Patrick Trucchio has estimated that generic-drug makers may be responsible for 30% of opioid-related liabilities, with Mallinckrodt facing a potential hit of as much as $6.4 billion." — John Lauerman, Bloomberg
Go deeper: Watch: The future of pain management