Mallinckrodt emerges from bankruptcy
Mallinckrodt, a global specialty pharmaceutical company, has completed its financial restructuring, emerged from Chapter 11 following an expedited court-supervised process and completed the Irish Examinership Proceedings.
Supported by an enhanced capital structure, Mallinckrodt will continue to focus on advancing its business across its portfolio and executing on recent and planned product launches. The company said it has made meaningful recent progress to stabilize the business, including achieving year-over-year net sales growth for the second consecutive quarter and year-over-year adjusted EBITDA growth for the third quarter 2023.
Recent highlights in Mallinckrodt's Specialty Brands portfolio include Food and Drug Administration acceptance of its Acthar Gel (repository corticotropin injection) delivery device Supplemental New Drug Application submission, positive launch and adoption momentum for Terlivaz (terlipressin) and a return to growth for Therakos. The company's Specialty Generics segment benefits from vertical integration and high-quality U.S.-based manufacturing plants that have supported strong growth. The company also recently received three FDA abbreviated new drug application approvals in specialty generics, including lisdexamfetamine dimesylate capsules, which is a generic form of Vyvanse.
[Read more: Mallinckrodt files for bankruptcy]
"Mallinckrodt has emerged from this process as a stronger company, better positioned to advance our strategic and operational initiatives and achieve long-term success," said Siggi Olafsson, president and CEO of Mallinckrodt. "With a balance sheet that is now aligned with our business priorities, we are moving forward with renewed energy to continue strengthening our execution and performance. Our top priority remains delivering therapies that improve outcomes for patients with severe and critical conditions."
"This process over the last several months could not have been possible without the support of many stakeholders. We sincerely thank the Mallinckrodt teams for their dedication and continued commitment to serving our customers and patients during this process," Olafsson continued. "We also thank our patients, customers and partners for their unwavering trust in the business and our future. Finally, we appreciate the support of our financial stakeholders to enable Mallinckrodt's future success meeting patient needs."
[Read more: Mallinckrodt files for second bankruptcy]
As a result of the restructuring process, Mallinckrodt reduced its total funded debt by approximately $1.9 billion and is moving ahead with ample liquidity to execute its strategic priorities.
In addition, the company shared that it has satisfied its obligations to the Opioid Master Disbursement Trust II (the "Trust") on terms agreed with the Trust, including through a $250 million payment made to the Trust prior to the Chapter 11 filing, among other consideration. Mallinckrodt will maintain its robust compliance and monitoring standards and continue operating in accordance with the Specialty Generics operating injunction under the oversight of an Independent Monitor, existing Acthar-related settlement conditions and Corporate Integrity Agreement, the company said.
As contemplated by Mallinckrodt's plan of reorganization, ownership of the business transitioned to the company's creditors and all of the Company's outstanding ordinary shares were extinguished at emergence.
In connection with Mallinckrodt's emergence, a new board of directors is being appointed.
David Stetson, executive chairman of Alpha Metallurgical Resources, and Jon Zinman, a managing director at Silver Point Capital, have been appointed to the board, effective immediately. Olafsson also is continuing to serve as a director. The new board will ultimately consist of seven members, and additional appointments, including board chair, will be forthcoming.
Olafsson added, "Jon and David are highly experienced leaders who bring expertise in management, finance and corporate strategy, and I'm delighted to welcome them to the board. We look forward to benefiting from their perspectives as we guide the company into its next phase. We also thank our departing directors for their many contributions and service to Mallinckrodt."
Latham & Watkins, Wachtell, Lipton, Rosen & Katz, Arthur Cox, Richards, Layton & Finger PA, and Hogan Lovells US served as Mallinckrodt's counsel. Guggenheim Securities, served as investment banker and AlixPartners served as restructuring advisor.