What's Behind Mallinckrodt's 12.2% Tumble Today
Growing concern that generic alternatives to one of its best-selling drugs could threaten future sales and that an investigation into the marketing of opioid pain medication could create headwinds sent shares in Mallinckrodt (NYSE: MNK) tumbling 12.3% today.
Mallinckrodt's Inomax represents 15% of sales, and today, a U.S. District Court invalidated 11 patents protecting the drug from generic competition. The news sparked a sell-off in shares that continued in spite of management reassurances that it will appeal the decision, and that Inomax maintains patent protection deep into 2018.
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Source: Fool.com