MNK – Management is confident in Acthar sales growth, the potential of ongoing studies, and their ability to sustain free cash flow

• Mallinckrodt plc (MNK:USA) currently trades near historical lows relative to UAFRS-based (Uniform) Earnings, with a 6.5x Uniform P/E, implying bearish expectations for the firm. However, management is confident in Acthar sales growth, the potential of ongoing studies, and their ability to sustain free cash flow
• Specifically, management is confident in the growth trajectory and stability of Acthar sales, and in the potential of rheumatoid arthritis and multiple sclerosis studies. Additionally, they are confident about their focus on maximizing their in-line portfolio value, international growth potential for INOMAX in cardiovascular surgeries, and the advantages of unit dosage studies for Acthar. Moreover, they are confident in their ability to sustain free cash flow, and pay down debt using proceeds from the separation of their Specialties and Generics business. Finally, they are confident in the transition of key customers from direct buying to wholesale, and in their CPP-1X/sulindac research potential