Mallinckrodt, the largest maker of generic opioids, filed for bankruptcy on Monday as it faces more than $1 billion in costs from lawsuits over its role in fueling the opioid crisis.

The company in February agreed to the framework of a $1.6 billion settlement with 47 attorneys general from states and territories over opioid-related lawsuits.

On Monday, the company detailed a structure for making those settlement payments, beginning with a $450 million payment upon emerging from bankruptcy proceedings.

“For years, they balanced their business on the backs of a product they knew was dangerous and deadly,” Connecticut Attorney General William Tong said in a statement on Monday. “As Mallinckrodt now collapses and files for bankruptcy, this agreement ensures $1.6 billion will be placed in a trust and used to directly address the pain, suffering and trauma caused by the opioid epidemic.”

The company is also agreeing to terms to prevent it from marketing its opioids in the future and to put in place protections aimed at preventing abuse.

The company said it would continue to serve customers “as normal” during the bankruptcy proceedings.

The company is also agreeing to pay $260 million over disputes about its pricing of its multiple sclerosis drug Acthar Gel.

Purdue Pharma, another major opioid maker, also filed for bankruptcy last year as part of a settlement to resolve opioid lawsuits against it.

Source Article

Drugmaker Mallinckrodt  (MNK) – Get Report became the third major opioid producer to file for bankruptcy, weighed down by thousands of U.S. lawsuits from states, cities and counties that have blamed drugmakers and distributors for the epidemic of overdose deaths.

“After many months of deliberation, negotiation and consideration of alternatives, Mallinckrodt’s management and board of directors determined that implementing a Chapter 11 restructuring provides the best opportunity to maximize the value of the enterprise and position the company for the future in light of the current challenges it faces,” said Mark Trudeau, Mallinckrodt’s president and CEO, in a statement.

The company said it entered into a restructuring agreement that would reduce its debt by about $1.3 billion. The company also said it aims to resolve all opioid litigation while in bankruptcy protection.

Mallinckrodt listed estimated liabilities of $1 billion to $10 billion in its bankruptcy filing and assets in the same range.

Purdue Pharma, the maker of the maker of OxyContin that entered Chapter 11 protection in September 2019, has proposed a $10 billion settlement of existing claims. Insys Therapeutics also filed for bankruptcy in 2019.

The Centers for Disease Control has estimated that every day in the U.S. 130 people die from an opioid-related drug overdose.

Mallinckrodt hired restructuring advisers late last year, and management disclosed in February that it was pursuing court protection.

The plan at that time was to settle its opioid claims by putting a small part of the company into bankruptcy, but it failed to gain required support from lenders.

Source Article

FILE PHOTO: Bottles of prescription painkillers Oxycodone Hydrochloride, 30mg pills, made by Mallinckrodt sit on a counter at a local pharmacy, in Provo, Utah, U.S., April 25, 2017. REUTERS/George Frey/File Photo

(Reuters) – Mallinckrodt Plc MNK.N filed for bankruptcy protection on Monday, saddled with lawsuits alleging it fueled the U.S. opioid epidemic and after it lost a court battle to avoid paying higher rebates to state Medicaid programs for its top-selling drug.

The company listed both assets and liabilities in the range of $1 billion to $10 billion in a filing with the U.S. Bankruptcy Court for the District Of Delaware.

More than 3,000 lawsuits have been filed accusing drug manufacturers of engaging in deceptive marketing that promoted the use of addictive painkillers, fueling an epidemic that since 1999 has resulted in more than 450,000 overdose deaths.

The company had in February said it planned to have its generic drug business file for bankruptcy as part of a tentative $1.6 billion opioid settlement to resolve claims by state attorneys general and U.S. cities and counties.

It further warned on Aug. 4 the parent company and other units may also seek bankruptcy protection after a judge allowed the federal government to force it to pay higher rebates to state Medicaid programs for its multiple-sclerosis drug H.P. Acthar Gel.

Its per-vial price has risen from about $50 in 2001 to $38,892 in 2019 and it generated 30.1% of the company’s net sales last year.

The drugmaker said it will implement a restructuring support agreement that would provide for an amended proposed opioid claims settlement and a financial restructuring.

“The company has agreed to pay $260 million over seven years and reset Acthar Gel’s Medicaid rebate calculation as of July 1, 2020, such that state Medicaid programs will receive 100% rebates on Acthar

Atea Pharmaceuticals, a clinical stage biotech developing therapies for COVID-19 and other viral infections, filed on Friday with the SEC to raise up to $100 million in an initial public offering.

Atea Pharmaceuticals is developing antiviral therapeutics for life-threatening viral infections. The company has built a proprietary purine nucleotide prodrug platform to develop novel product candidates to treat single stranded ribonucleic acid, or ssRNA, viruses, which are a prevalent cause of severe viral diseases. The company’s most advanced candidate, AT-527, is currently in a Phase 2 trial in approximately 190 adult patients with moderate COVID-19, with topline data expected in the 1H21.

The Boston, MA-based company was founded in 2014 and plans to list on the Nasdaq under the symbol AVIR. J.P. Morgan, Morgan Stanley, Evercore ISI and William Blair are the joint bookrunners on the deal. No pricing terms were disclosed.

The article COVID-19 biotech Atea Pharmaceuticals files for a $100 million IPO originally appeared on IPO investment manager Renaissance Capital’s web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital’s research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

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

Source Article

Lufax Holding, the operator of one of China’s biggest online wealth management platform, filed to go public in the US market, the latest Chinese company to shrug off concerns about worsening relations between the world’s two largest economies.

The Shanghai-based company is backed by China’s biggest insurer Ping An Insurance (Group) and follows in the footsteps of the insurer’s unit OneConnect Financial Technology, which raised US$312 million in its New York Stock Exchange (NYSE) debut in December.

Lufax said it plans to list its American depositary shares on the NYSE under the symbol, LU, it said in a regulatory filing early Thursday.

Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.

Lufax did not disclose the size of its offering, using a common place holder figure of US$100 million in its filing with the US Securities and Exchange Commission. But sources have said the IPO could raise between US$2 billion and US$3 billion.

Lufax was valued at US$39.4 billion during its last-known funding round at the end of 2018. It previously considered a Hong Kong listing in 2018, but that never materialised. Details of potential US listing by Cayman Island-registered Lufax first emerged in July.

In Thursday’s filing, Lufax showed it had a net profit of 7.2 billion yuan (US$1.03 billion) for the six months to June 30. It reported a net profit of 7.5 billion yuan a year earlier.

The company said it plans to use the proceeds from the offering for general corporate purposes, including product development, sales and marketing activities and improving its technology infrastructure.

The company stopped facilitating new peer-to-peer loans in August last year. As of June 30, outstanding peer-to-peer loans as a percentage of total client assets had declined to 12.8 per cent.

Goldman Sachs,