Mallinckrodt, a Bankrupt Drug Company, Contemplates Offloading Opioid Business, Reports WSJ

Bankrupt drug company Mallinckrodt is reportedly in discussions to sell some or all of its business units, which could result in its exit from the opioid industry. The company is engaging with investors regarding this possibility, as detailed in a report from the Wall Street Journal. Mallinckrodt is said to be considering divisional separation while retaining control of the company throughout its ongoing bankruptcy proceedings. Mallinckrodt has not yet responded to requests for comment on the matter. This development comes after the Ireland-based company filed for bankruptcy for the second time in the United States. The initial bankruptcy filing in 2020 was driven by substantial debts and lawsuits related to the company’s opioid sales. As part of its plans to emerge from bankruptcy in June 2022, Mallinckrodt, which denies any wrongdoing, will seek $1.7 billion to settle approximately 3,000 lawsuits claiming deceptive marketing practices were used to promote opioids. In addition, Mallinckrodt revealed in a recent Securities and Exchange Commission filing that it had received a grand jury subpoena from the US Attorney’s Office for the Western District of Virginia pertaining to suspicious opioid orders. The company is cooperating with authorities and providing requested information. Mallinckrodt’s future remains uncertain as it navigates these challenges and explores potential business unit sales.