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Mallinckrodt Beats on Earnings & Revenues in Q4

MallinckrodtMNK is focused on developing treatments for autoimmune and rare diseases (including neurology, rheumatology, nephrology and pulmonology) as well as therapies for pain.

The company develops, manufactures, markets and distributes both branded and specialty generic pharmaceuticals, active pharmaceutical ingredients (API) and diagnostic imaging agents. During the first quarter of 2015, the company changed its reportable segments and since then reports in three segments: Specialty Brands, Specialty Generics and Nuclear Imaging. The company has decided to sell its contrast media and delivery systems business to Guerbet S.A. in late July 2015. The transaction will be completed in the first quarter of fiscal 2016. Hence, the Global Medical Imaging segment has been renamed Nuclear Imaging.

During the second quarter of fiscal 2015, Mallinckrodt acquired Ikaria Inc. to strengthen its business in the hospital market. With the addition of Inomax to its portfolio, Mallinckrodt gained access to the market for neonatal critical care, which helped it to diversify its portfolio in the Specialty Brands segment. The company also acquired Therakos Inc. in Sep 2015 to widen its presence from multimodal surgical pain management and critical care respiratory therapies in neonatal intensive care units to include innovative immunotherapy therapies.

Mallinckrodt has an excellent earnings track record with the company delivering positive earnings surprises in each of the last four quarters with a positive average earnings surprise of 17.5%. Estimate revisions for Mallinckrodt have been more or less static in the last thirty days.

Currently, Mallinckrodt has a Zacks Rank #3 (Buy), but that could definitely change following the company's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings : Mallinckrodt beat on earnings by a wide margin. Our consensus called for EPS of $1.74, and the company reported EPS of $1.84.

Revenue: Revenues also surpassed expectations. Mallinckrodt posted revenues of $882.4 million, compared to our consensus estimate of $869 million.

Key Stats : Revenue growth was primarily driven by the performance of H.P. Acthar Gel and Inomax. However, sales of methylphenidate HCl extended-release (ER) tablets and oxycodone-related products decreased from the year-ago quarter. Methylphenidate ER sales declined due to the FDA's reclassification of these products from an AB rating to a BX rating in Nov 2014 while oxycodone-related products sales declined due to increased competition. The negative impact of foreign currency movements lowered the sales by $11.8 million.

Check back later for our full write up on this Mallinckrodt earnings report later!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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