Facing declining market share in its core generic controlled
substance (painkillers) market and holding the valuable asset of an
Irish tax domicile, Mallinckrodt plc (NYSE: MNK ) has aggressively put its balance sheet to work. First the company announced a $1.3 billion deal for Cadence Pharmaceuticals (NASDAQ: CADX )
and its hospital-centered Ofirmev product (injected acetamenophen).
Now the company is taking an even bigger swing – announcing a $5.6
billion deal for controversial Questcor (NASDAQ: QCOR ) and its lead drug Acthar.
If Mallinckrodt can steer Questcor past the rocks that short
sellers have been loudly claiming are in the company's path, this deal
could double Mallinckrodt's earnings in relatively short order. If the
short sellers are proven right about the many and varied problems of
Questcor and Acthar, Mallinckrodt's shareholders will pay the price.
Read more here:
Mallinckrodt plc Takes a Big Swing for Growth
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