Mallinckrodt’s Split From Covidien Founded On Strong Specialty Pharmaceutical Numbers

Later this year Mallinckrodt is likely to spin off from Covidien and pursue its long-term objective to become a leading specialty pharmaceutical company.

As part of the run up to the spin-off, Covidien has announced 2013 full year guidance for Mallinckrodt with with net sales growth by fiscal year end of Sept 27th expected to be in the range of 7% to 11% versus 2012, assuming foreign exchange rates at current levels.

Net sales are expected to be up 21% to 25% in Mallinckrodt’s Specialty Pharmaceuticals segment and to decline 3% to 7% in its Global Medical Imaging segment.

For fiscal 2013, Mallinckrodt expects adjusted EBITDA as a percentage of sales, to be in the range of 17% to 21%. The guidance ranges for adjusted EBITDA reflect the financial results for one quarter of Mallinckrodt operating as a standalone, public company and three quarters reflecting the business as historically managed part of Covidien prior to the separation.

Company comments 

“As we approach our anticipated spin off, we are building on a strong foundation and are well positioned for long-term growth,” said Mark Trudeau, who will serve as President and CEO of Mallinckrodt. “We delivered double-digit growth in sales for the second quarter of fiscal 2013, driven in large part by the launch of the 27 mg, 36 mg and 54 mg tablet strengths of Methylphenidate HCl Extended-Release (ER) Tablets, continued growth of EXALGO® and the addition of Gablofen®. We have some challenges to navigate — such as the loss of marketing exclusivity for products in both our Brands and Generics portfolios, a need for investment to successfully deliver on our pipeline opportunities, and the ongoing challenge of the shutdown of the high flux reactor in the Netherlands. But overall, we are optimistic that we are well positioned for the spin and for a positive future as a stand-alone company.”

Full release here.

Source: Covidien, Business Wire