Why Mallinckrodt Stock Is Soaring Today

Shares of Mallinckrodt (NYSE:MNK) were soaring 16.2% as of 11:08 a.m. EST on Tuesday after rising as much as 51.7% earlier in the day. The drugmaker announced its fourth-quarter results before the market opened, but the main reason behind the big gain was the company's news that it has reached an agreement in principle that would settle all open opioid-related litigation.

Mallinckrodt stock plunged by as much as 45% on Monday on reports that it was considering filing for Chapter 11 bankruptcy. The company confirmed today that a bankruptcy filing is on the table, but only for its specialty generics businesses. The drugmaker's proposed settlement would become effective after the specialty generics businesses emerged from bankruptcy.

Image source: Getty Images.

Source Fool.com