Big Pharma

Mallinckrodt Bankruptcy Cuts $1.9 Billion from Their Opioid Settlement

CAPITALISM REIGNS –

Aug. 23, 2023 – Mallinckrodt failed to make a $200 million payment to the opioid trust due in June, prompting the company to launch a negotiation with its stakeholders.

The agreement and bankruptcy will “enable Mallinckrodt to better align our balance sheet with our current business plan,” said Siggi Olafsson, the company’s president and chief executive officer.

Mallinckrodt said that its current level of creditor support should allow the company to complete its second bankruptcy by the end of 2023. The Ireland-based company is one of the largest manufacturers of opioids. It also makes generic and branded drugs such as Acthar Gel, which is used to treat multiple sclerosis and infantile spasms.

Before its 2020 bankruptcy filing, Mallinckrodt was a defendant in more than 3,000 lawsuits alleging that it used deceptive and misleading marketing tactics to boost its sales of highly addictive opioid drugs.

Drug manufacturers, drug distributors and pharmacy chains have agreed to pay more than $50 billion in settlements to resolve lawsuits related to the U.S. opioid crisis.

READ@Reuters

C Luke

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