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Mallinckrodt plc (MNK) PT Lowered to $37 at Piper Jaffray; Reiterates Overweight

January 3, 2018 7:04 AM EST
Get Alerts MNK Hot Sheet
Price: $0.34 --0%

Rating Summary:
    6 Buy, 14 Hold, 5 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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Piper Jaffray lowered its price target on Mallinckrodt plc (NYSE: MNK) to $37.00 (from $40.00) while maintaining a Overweight rating. The company's plans to acquire Sucampo on the surface may appear to be baffling to the extent that SCMP's primary top-line driver, Amitiza, loses exclusivity in 2021. That said, MNK is essentially accessing two late-stage, rare disease-focused assets, and to the extent that Amitiza has a significant revenue tail following the loss of exclusivity in 2021, all the better.

The two late-stage assets that MNK added both have orphan status. At this point, the narrative on MNK should shift from the myriad concerns surrounding Acthar to a debate on whether the pipeline will yield enough in the way of longer-term cash flows such that it can cushion the blow from potential pressure on Acthar, the loss of exclusivity of Ofirmev, and potential competition from Praxair on INOmax.



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