Mallinckrodt plc Q1 2024 Financial Results and Full Year Guidance Confirmed

Mallinckrodt plc, a global specialty pharmaceutical company, has announced its financial results for the first quarter ending on March 29, 2024. The company reported net sales of $467.8 million, marking a 10.2% increase compared to the same period in the previous year. Despite a net loss of $65.4 million, this reflects a significant 73.8% improvement year-over-year. The company’s Adjusted EBITDA was $144.9 million, up by 17.3% from the previous year.

Siggi Olafsson, President and CEO of Mallinckrodt, expressed satisfaction with the company’s performance, particularly in the Specialty Brands and Specialty Generics segments. The Specialty Brands segment saw net sales of $257.3 million, a slight increase from $252.0 million the previous year. This growth was primarily driven by stabilized demand for Acthar Gel and the ongoing launch of Terlivaz. However, competition impacted some areas of the segment. The rollout of the INOmax EVOLVE DS delivery system has begun in select hospitals, garnering positive initial feedback. The company is also preparing for the third-quarter launch of the Acthar Gel Single-Dose Pre-filled SelfJect Injector.

In the Specialty Generics segment, net sales increased to $210.5 million from $172.6 million, reflecting a robust growth of 22.0%. This segment’s performance highlights Mallinckrodt’s ability to meet market demand for high-quality medicines amid supply disruptions.

Detailed financial results for the first quarter indicate that the company’s adjusted gross profit as a percentage of sales was 64.0%, up from 62.0% the previous year. This improvement is attributed to a favorable shift in the product mix. Mallinckrodt ended the quarter with a cash balance of $253.6 million and total debt of $1,645.7 million, resulting in net debt of $1,392.1 million.

The company continues to advance its business priorities with significant developments in various segments. Acthar Gel’s net sales reached $102.8 million, up 25.4% from the prior year, driven by stabilized demand and seasonal order variability. The expected launch of the SelfJect in the third quarter of 2024 remains on track.

Terlivaz, a newly launched product, achieved net sales of $6.0 million. The company has gained formulary inclusion in over 225 hospitals and has a dedicated sales team to support its growth. The focus now shifts to early patient identification and broader provider adoption.

INOmax sales were affected by competitive pressures. However, the rollout of the INOmax EVOLVE DS Delivery System has received positive feedback and is expected to expand later this year. This system aims to meet the needs of NICU patients with enhanced safety features.

Therakos sales met expectations, bolstered by strong performance in the U.S. and geographic expansion. The company anticipates mid-single-digit net sales growth for this product in 2024.

The Specialty Generics segment’s year-over-year net sales growth of 22.0% underscores the company’s capability to provide quality products and maintain stable supply amid market challenges. This growth was driven by finished-dosage products and the acetaminophen business.

Mallinckrodt remains dedicated to innovation and growth, with a focus on delivering high-quality pharmaceuticals and therapies across its Specialty Brands and Specialty Generics segments. The company’s performance in the first quarter of 2024 sets a positive tone for the remainder of the year as it continues to navigate market dynamics and patient needs.