Bankrupt drugmaker Mallinckrodt considers sale of opioid business
Bankrupt drugmaker Mallinckrodt considers sale of opioid business: The Wall Street Journal reported on Monday, citing individuals familiar with the conversations, that bankrupt manufacturer Mallinckrodt is in talks with large investors about selling part or all of its business divisions, which may lead to its withdrawal from the opioid market.
According to the story, some investors who are hoping to seize control of the firm through its current bankruptcy procedures are recommending Mallinckrodt split up its business divisions.
Remarks from Mallinckrodt were not immediately available when contacted by Reuters.
The Ireland-based business announced its second bankruptcy filing in the US last month, proposing a reorganization that would reduce its debt to Americans affected by the opioid epidemic by $1 billion.
The pharmaceutical manufacturer Mallinckrodt, which produces both branded and generic medications, first declared bankruptcy in 2020 as a result of mounting debt, legal action stemming from its promotion of extremely addictive generic opioids, and disagreements on medicine prices.
The business, which denied any wrongdoing, agreed to pay $1.7 billion to resolve over 3,000 claims claiming it used misleading marketing practices to promote opioid sales as part of its strategy to emerge from bankruptcy in June 2022.
A grand jury subpoena from the U.S. Attorney’s Office for the Western District of Virginia was received by Mallinckrodt last month, as it was revealed in filings with the Securities and Exchange Commission. The subpoena sought information regarding Mallinckrodt’s reporting of suspicious opioid orders to the U.S. Drug Enforcement Administration.
Also Read –