March 5, 2018

MNK – Market expectations are for declining Uniform ROA, but management is confident in their Acthar and INOMAX targets, pipeline, and interest expense


      • Mallinckrodt Public Limited Company (MNK:USA)¬†currently trades near historical lows relative to UAFRS-based (Uniform) Earnings, with a 5.2x Uniform P/E, implying bearish expectations for the firm. However, management is confident in their Acthar and INOMAX targets, pipeline, and interest expense
      • Specifically, management is confident in their ability to deliver against their Acthar and INOMAX targets, and in their pipeline assets coming out of the Sucampo acquisition. Additionally, they are confident in the importance of commercial covered lives under contract, and that 2018 is an important year for Acthar. Furthermore, they are confident in their interest expense guidance for the year being about the same as last year, as they have reduced their 453A interest associated with the deferred tax liability

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