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Stock Market & Financial Investment News

News Breaks
April 7, 2014
10:40 EDTQCOR, MNKShort-seller target Questcor spikes after deal to be bought by Mallinckrodt
Questcor (QCOR) shares are sharply higher this morning after the company agreed to be bought by Mallinckrodt (MNK) in a transaction valued at approximately $5.6B. WHAT'S NEW: Questcor, a biopharmaceutical company whose primary drug, H.P. Acthar Gel, is approved by the FDA for the treatment of 19 indications, will be acquired by Mallinckrodt for about $5.6B, made up of $30.00 per share in cash and 0.897 Mallinckrodt shares for each Questcor share they own. The total consideration equated to approximately $86.10 per Questcor share based on the closing price of Mallinckrodt shares on April 4. After the deal closes, Mallinckrodt shareholders will own approximately 50.5% and former Questcor shareholders will own approximately 49.5% of the combined company's stock. The deal is expected to immediately add to Mallinckrodt's fiscal 2014 adjusted earnings per share and significantly add to fiscal 2015 adjusted EPS. The transaction is targeted to close in the third quarter. On the companies' conference call discussing the merger, Questcor said it believes that its first quarter sales will be "somewhat lower" than the fourth quarter of 2013, but also "substantially higher" than last year's first quarter; the consensus estimate for Q1 revenue is $242.08M. Questcor also said that it sees a "favorable" tax structure and operating cash flow, as well as immediate value for shareholders. Mallinckrodt said sees about a 10% decline in the tax rate with the Questcor deal and believes it will realize immediate tax benefits. Mallinckrodt added that its focus will be on deleveraging in the coming months to allow for strategic acquisitions. WHAT'S NOTABLE: Of the 19 indications approved for Acthar, Questcor currently generates substantially all of its net sales from the following on-label indications: the treatment of proteinuria in the nephrotic syndrome of the idiopathic type, or NS, the treatment of acute exacerbations of multiple sclerosis, or MS, in adults, the treatment of infantile spasms, or IS, in infants and children under two years of age, and the treatment of certain rheumatology related conditions. Questcor has been a frequent target of the short-selling blog Citron Research in the past. As recently as March 14, Citron Research claimed Questcor was "deceiving" the FDA and investors, alleging H.P. Acthar Gel's active ingredient is less than 20% of the label specification. PRICE ACTION: Questcor is trading up $11.48, or 16.91%, to $79.35 in mid-morning trading. Meanwhile, Mallinckrodt is down $1.70, or 2.72%, to $60.82.
News For QCOR;MNK From The Last 14 Days
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October 23, 2014
10:01 EDTMNKOn The Fly: Analyst Initiation Summary
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07:20 EDTMNKMallinckrodt initiated with a Buy at Guggenheim
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October 20, 2014
07:12 EDTMNKCongress of Neurological Surgeons to hold annual meeting
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October 15, 2014
06:42 EDTMNKMallinckrodt valuation remains compelling, says Piper Jaffray
Piper Jaffray believes Mallinckrodt's outlook for FY15 is conservative and that the risk/reward on shares is compelling. The firm raised its price target for the stock to $109 from $105 following the company's investor day and reiterates an Overweight rating on the name.
October 14, 2014
11:13 EDTMNKMallinckrodt management to meet with UBS
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09:40 EDTMNKMallinckrodt aims to drive 'modest' growth in specialty controlled generics
Says aiming for profitability and revenue growth. Will continue to expand its pain management business. Looking to increase shareholder value, patient solutions and to drive top-line growth. Says aims to develop and acquire "durable, late stage complex products." Looking to invest in pipeline extensions of key portfolio assets. Aims to divest lower margin, slower growing business. Says sees future expansion in ophthalmology and dermatology. Looks to actively divest lower-growth businesses. Says durable assets, platforms positioned for sustained Specialty Pharmaceuticals growth. Says OFIRMEV is well positioned for growth in FY15 and beyond. Aims to up Acthar growth and initiate commercial efforts. Plans to enhance its science and technology investment. Comments made during the company's investor briefing.
07:34 EDTMNKMallinckrodt to host conference call
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07:02 EDTMNKMallinckrodt sees FY15 adjusted EPS $6.70-$7.20, consensus $6.80
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06:03 EDTMNKMarket overreacted to new Irish tax rules, says BMO Capital
BMO Capital believes the market may have overreacted yesterday to the report that Ireland is eliminating the "Double Irish" tax loophole. The firm says Allergan (AGN) confirmed that it incorporated potential changes to Irish tax law in its recently raised earnings guidance while Mallinckrodt (MNK) said it does expect the new tax structure to have an immediate impact. BMO views yesterday's pullback in shares of Allergan, Mallinckrodt and Actavis (ACT) as an overreaction.
October 10, 2014
07:16 EDTMNKAmerican Society of Plastic Surgeons to hold annual meeting
Annual Meeting of ASPS is being held in Chicago on October 10-14.

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