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The drugmaker’s shares, which have already lost about 92% of their value this year, fell 18.4% to 48 cents in early trading after the company said it had entered into a new restructuring agreement with its creditors and an opioid victims trust.
The company will make a one-time and final payment of $250 million to the trust in addition to $450 million it has paid, out of the $1.7 billion litigation settlement amount it was required to pay.
After emerging out of the first bankruptcy in 2022, it failed to make a $200 million payment to the opioid trust due in June, prompting the company to launch a negotiation with its stakeholders.
Now as part of the latest agreement, Mallinckrodt will reduce its total debt by about $1.9 billion.
The agreement and bankruptcy will “enable Mallinckrodt to better align our balance sheet with our current business plan,” said Siggi Olafsson, president and chief executive officer of Mallinckrodt.
The Ireland-based company, one of the largest manufacturers of opioids, also makes generic and branded drugs such as Acthar Gel, which is used to treat multiple sclerosis and infantile spasms.
