Friday 09 March 2018 by Company updates

Mallinkrodt full year 2017 results

On 2 February 2018, Mallinckrodt (MNK) reported its full year 2017 results.

The following MNK USD bonds, all rated BB- by S&P, are traded at FIIG:

  • MNK 4.875% April 2020 senior unsecured notes – yield to worst of 5.72%.Factsheet
  • MNK 5.75% August 2022 senior unsecured notes – yield to worst of 8.26%.Factsheet
  • MNK 5.625% October 2023 senior unsecured notes – yield to worst of 8.74%.Factsheet

Please note the prices indicated are accurate as at 9 March 2018, subject to change. The bonds are available to wholesale clients only. 

Mallinkrodt key financial results:

  • Net sales was at USD3.22bn, down from USD3.38bn in FY16
  • Gross profit was at USD1.66bn, down from USD1.86bn in FY16
  • Operating income was at USD420m, down from USD617m in FY16
  • Total assets of USD15.28bn, down from USD15.5bn in FY16
  • Entered into licensing agreement with NeuroproteXeon Inc., terms under which MNK paid USD10m cash up front. The agreement includes additional payments of up to USD25m dependent on developmental, regulatory and sales milestones
  • Cash on hand funded acquisition of Ocera Therapeutics for upfront consideration of USD42.4m of which USD1.9m of the consideration was paid subsequent to 29 December 2017. Contingent consideration of up to USD75m to be based on the successful completion of certain development and sales milestones

Source: company reports

  • Shift in focus to patients with severe and critical conditions led to Board approved disposal of three areas of MNK’s business, referred to collectively as “the Specialty Generics Disposal Group”. The group includes the following: Specialty Generics business, non-promoted brands business, and ongoing, post-divestiture supply agreement with the acquirer of the CMDS business
  • Completed sale of the company’s Nuclear Imaging business to IBA Molecular for approximately USD690m before tax, including up front consideration of circa USD574m, up to USD77m contingent consideration and the assumption of certain liabilities
  • Completed the sale of the company’s Intrathecal Therapy business to UK based Piramal Critical Care for circa USD203m, including fixed consideration of USD171m and contingent consideration of up to USD32m

In February 2018 (subsequent to the fiscal year ended 29 December 2017), MNK acquired Sucampo Pharmaceuticals, Inc. ("Sucampo"). Consideration for the transaction consisted of approximately USD1.2bn, including the assumption of Sucampo's third party debt ("the Sucampo Acquisition").

The acquisition was funded through MNK’s issuance of USD600m aggregate principal amount of senior secured notes in February 2018, a USD900m borrowing under the company’s revolving credit facility (that was fully drawn as of 29 December 2017) and cash on hand.

Please see MNK’s full FY17 report available on its website.