Mallinckrodt (MNK): Details on Stratatech Acquisition - Mizuho

August 11, 2016 6:38 AM EDT
Get Alerts MNK Hot Sheet
Price: $52.60 +0.48%

Rating Summary:
    17 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
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Mizuho Securities analyst, Irina Koffler, reiterated her Buy rating on shares of Mallinckrodt plc (NYSE: MNK ) after Mallinckrodt acquired Stratatech, a private company focused on regenerative medicine to create skin substitutes. The financials terms of the deal were not released, but it is expected to close in 2H:CY16.

The management indicated the deal would be slightly dilutive to MNK through higher OpEx but it did not lower guidance, noting the strength in the core business should compensate for any dilution. Given the early stage of this program and the lack of financial details, we are not updating our model for now. However, the company is investing in an innovative biologic platform that is a strong strategic fit for its hospital sales force, and could generate a number of other pipeline indications.

No change to the price target of $91.00

For an analyst ratings summary and ratings history on Mallinckrodt plc click here. For more ratings news on Mallinckrodt plc click here.

Shares of Mallinckrodt plc closed at $78.77 yesterday.



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