MNK stock is trading down on Wednesday after Mallinckrodt (NYSE:MNK) announced plans to publish a report into the board’s oversight of risks related to the company’s role in contributing to the opioid crisis in the US, as well as further plans to update its Incentive Compensation Clawback Policy.
MNK Stock Teetering on the Edge
Mallinckrodt has been at the center of the escalating opioid crisis and was reportedly the single largest manufacturer of opioid painkillers between 2006 and 2012. It is also one of six pharmaceutical firms under investigation by prosecutors at the US Attorney’s office for the Eastern District of New York. With lawsuits mounting and the possibility of substantial payouts weighing in the company’s already declining revenues, MNK stock has tanked as much as 85% since March.
As those issues mount and MNK shares continue to shed their value, the company has today announced that it will create and publish a report by March 31, 2020 describing its approach to the oversight of opioid-related matters. Mallinckrodt said that it “remains dedicated to providing safe and effective medications for the treatment of patients with pain and is equally committed to working with policymakers, law enforcement and industry to address the complex issues of opioid addiction and abuse.”
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Debt Swap Fails
In a further blow to MNK stock, the company failed to win approval for a $700 million USD debt swap last week, with only a small group of investors agreeing to extend the deadline on debt due in the coming months, leaving the troubled firm with more than $600 million USD in notes due April. CEO Mark Trudeau told investors that the company was hoping for the best but planning for the worst.
Also today, the Irish tax-registered firm announced it will update its Incentive Compensation Clawback Policy to include a provision that will require the company to annually disclose the recoupment of any incentive compensation made from senior executives in the previous fiscal year.
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