Here's Why Mallinckrodt Fell Over 17% Today
Shares of Mallinckrodt (NYSE: MNK) dropped as much as 17.3% today on multiple news items. The company reported that an appeals court has ruled that patents covering INOmax, the company's inhaled nitric oxide product, were not infringed upon by competing drug Noxivent from Praxair. That wasn't all.
On Monday, news broke that a judge in Oklahoma had ordered Johnson & Johnson to pay $572 million for its role in the opioid crisis in the state. That wasn't quite the $17 billion that state prosecutors had sought, but it was more than the $270 million paid by Purdue Pharma and the $85 million paid by Teva Pharmaceuticals earlier this year.
Mallinckrodt is also listed in lawsuits stemming from the opioid crisis in states across the country. Investors are transitioning from optimism to pessimism about how the company will fare in court. As of 3:38 p.m. EDT, the stock had settled to a 14.7% loss.
Source Fool.com
