Leerink Partners analyst Jason Gerberry lowered estimates and his price target on Market Perform-rated Mallinckrodt plc (NYSE: MNK) to $112.00 (from $133.00) following mixed Q3 results that included a ~$20m miss on consensus due to weaker than expected Acthar (autoimmune disease) and oxycodone Gx sales.

Gerberry commented, "While the F'3Q topline miss was relatively modest, our new model includes much more conservative forecasts for Acthar following mgmt.'s revised outlook for slower product growth. In addition, while MNK's Xartemis XR was clearly struggling to gain traction in the pain market, the decision to stop promoting the drug (as well as future promotion of MNK-155) largely eliminates two high margin contributors from our model. Our updated F'16 EPS of $7.87 backs out contribution from the recently divested contrast imaging and takes into account our lower sales forecasts. We now forecast F'15-17 and F'15-21 EPS CAGR's of 9% and 7%, compared to 15% and 13%, respectively. We are lowering our PT to $112/share (from $133) reflecting lower EPS & multiple compression. We remain MP."

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Shares of Mallinckrodt plc closed at $106.73 yesterday.