You heard it here first. Mallinckrodt will be purchased

Discussion in 'Mallinckrodt' started by Anonymous, Feb 26, 2015 at 11:40 PM.

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  1. Anonymous

    Anonymous Guest

    In today's news. Seekingalpha.com

    With Mallinckrodt having its headquarters in Ireland, they are in a perfect position to be acquired by a foreign company looking for an inversion target. An example of how Mallinckrodt could use its strong balance sheet can be seen from the recent deal where Actavis, which is headquartered in Ireland, agreed to purchase Allergan, which is headquartered in the U.S. Actavis gained a strong drug portfolio, and will be able to lower the taxes that they have to pay on Allergan earnings. Mallinckrodt could selectively target companies that would fit in there product portfolio of specialty branded pharmaceuticals, and special generics.

    Mallinckrodt would be an attractive acquisition target because of its strong growth potential, and because it is located in Ireland. This possibility would have been more feasible before regulations were implemented that made inversions more difficult to complete. If there were a company looking to try to invert, I believe Mallinckrodt would be the best target, because they have had the highest growth over the last five quarters. Using the Fidelity stock screener, I searched for healthcare companies located in Ireland that had a market capitalization of at least $5 billion. I found eight companies including Mallinckrodt that were located in Ireland and I looked at the revenue growth rate over the last five quarters. Included on the list of companies was Medtronic (NYSE:MDT), and because it recently inverted I excluded it from my list of Irish companies. As the table below shows Mallinckrodt has the highest revenue growth of the last five quarters, which I believe makes it an attractive acquisition target.

    Company
    Symbol
    Quarterly Revenues
    Growth Rate
    ACTAVIS PLC
    ACT
    2,779
    2,655
    2,667
    3,683
    4,057
    9.92%
    ALKERMES PLC
    ALKS
    138.6
    139.8
    130.2
    153.4
    160
    3.65%
    ENDO INTERNATIONAL PLC
    ENDP
    661
    585
    595
    719
    764
    3.69%
    JAZZ PHARMACEUTICALS PLC
    JAZZ
    232.2
    235.8
    246.9
    291.2
    306.6
    7.20%
    MALLINCKRODT PLC
    MNK
    540
    558
    653
    789
    866
    12.53%
    PERRIGO CO PLC
    PRGO
    979
    1,004
    1,144
    952
    1,072
    2.29%
    SHIRE PLC
    SHPG
    1,261
    1,347
    1,502
    1,597
    1,576
    5.73%
    Valuation
     
  2. Anonymous

    Anonymous Guest

    Well MT and HO will walk away with millions and leave the rest out to dry. PROTECT YOURSELVES and update your resumes! This has always been part of the plan.
     
  3. Anonymous

    Anonymous Guest

    Ever wonder why HO, SC, JD don't live in St. Louis? There is a reason. They know the company is going to be acquired.

    Too expects are dumping their shares:
    Mallinckrodt PLC logoMallinckrodt PLC (NYSE:MNK) Director Don M. Bailey sold 33,891 shares of Mallinckrodt PLC stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $114.63, for a total transaction of $3,884,925.33. Following the completion of the transaction, the director now directly owns 136,605 shares of the company’s stock, valued at approximately $15,659,031.15. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link.
     
  4. Anonymous

    Anonymous Guest

    Blogger Quoth the Raven notes that in its 10-Q Mallinckrodt (NYSE: MNK) disclosed they are being probed by the Texas Attorney General's office for Medicaid fraud.

    From the filing:

    In late November 2014, the Company received a CID from the Civil Medicaid Fraud Division of the Texas Attorney General's Office. According to the CID, the Attorney General's office is investigating the possibility of false reporting of information by the Company regarding the prices of certain of its drugs used by Texas Medicaid to establish reimbursement rates for pharmacies that dispensed the Company's drugs to Texas Medicaid recipients.
     
  5. Anonymous

    Anonymous Guest

    Why sell before a purchase. Isn't it smarter to hold on until the company is sold?
     
  6. Anonymous

    Anonymous Guest

    I her imaging is first in the block. Legally and tax wis itcan only be done after July 1st whichwillbe 2 years to save any taxes by the IRS