Business & Tech

Mallinckrodt Reports Quarterly Loss After Covidien Spinoff

The company said its loss includes $44.2 million in separation costs and restructuring charges of $11.3 million.

Just a few months after becoming a company independent of Covidien, Mallinckrodt has reported losses for the fiscal third quarter of $27.9 million — losses it attributes to the very separation that created the independent company.

The St. Louis Business Journal reported on the Hazelwood company's losses, saying they included $44.2 million in separation costs, restructuring charges of $11.3 million and $27.5 million in corporate build-out costs.

The local business publication quoted a statement from Mallinckrodt President and CEO President and CEO Mark Trudeau:

“Our specialty pharmaceuticals segment posted strong increases in net sales and operating income, benefiting from the sale of higher-margin branded and generic pharmaceutical products... Looking forward, we are optimistic about Mallinckrodt’s pipeline, which will enable us to bring to market important new drugs.... At the same time, we are committed to becoming more profitable by driving operating efficiencies throughout the company."

Mallinckrodt was the pharmaceuticals business of Covidien before it was spun off to be a separate, publicly traded pharmaceutical company. The Mallinckrodt name has a long history in St. Louis, as it was once a chemical company used to help ionize uranium for the nation's first atomic bomb as part of  The Manhattan Project.

The Journal reports that Mallinckrodt showed fiscal third quarter revenue of $570 million, a 10.4 percent increase from its $516.3 million in the same period for 2012.


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here

More from Hazelwood