Three years after Mallinckrodt filed for Chapter 11 bankruptcy, the Dublin-based drugmaker said Nov. 14 it has stabilized its business.
In October 2020, Mallinckrodt filed for bankruptcy in all of its U.S. subsidiaries with the plan of quelling its debt by about $1.3 billion after resolving opioid-related claims and litigation involving its drug Acthar, a multiple sclerosis and seizure medication. The company settled for $260 million over claims it knowingly underpaid CMS for Acthar.
After restructuring its financials during the Chapter 11 bankruptcy, Mallinckrodt reduced its total debt by about $1.9 billion, it said in a news release.
"Mallinckrodt has emerged from this process as a stronger company, better positioned to advance our strategic and operational initiatives and achieve long-term success," Siggi Olafsson, president and CEO of Mallinckrodt, said in the release.