Why Mallinckrodt, Universal Insurance Holdings, and Cellectis Slumped Today
Tuesday was not a good day on Wall Street, as the major market indexes closed with losses of in the neighborhood of 1%. Uncertainties surrounding North Korea continued to dominate investors' attention around the world, especially as comments from leaders in Russia and China showed the complexity of the situation stemming from its recent nuclear tests and escalating rhetoric. But while some may have taken geopolitics or weather-related concerns as reasons to take money off the table, there are also investors who sold to play the odds of history: Over many decades, Septembers have been, on average, among the worst months for the stock market.
Some stocks, of course, suffered Tuesday due to their own company-specific setbacks: Mallinckrodt (NYSE: MNK), Universal Insurance Holdings (NYSE: UVE), and Cellectis (NASDAQ: CLLS) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Mallinkrodt fell more than 12% to $36.12 after the pharmaceutical company suffered a painful loss in federal court. The drug maker had been looking to defend its patents related to its respiratory treatment system, Inomax, against potential generic competition. Instead, a Delaware judge ruled that the competing product didn't infringe on any patents that Mallinckrodt had. That setback put further pressure on the shares, which had already lost substantial ground so far in 2017. The ruling could also reduce interest in Mallinckrodt as a potential takeover target, especially if would-be buyers viewed Inomax sales as an integral part of any value proposition for the company.
Source: Fool.com