Shares of Mallinckrodt rally after 2Q profit and revenue beat

Mallinckrodt PLC (NYSE:MNK) jumped in premarket trade Tuesday after the pharmaceutical products company beat second-quarter profit and sales expectations, and raised its full-year outlook.

For the quarter ended June 2018, the UK-headquartered branded drug maker posted earnings of US$1.78 per share on revenue of US$631.7mln. The results topped Wall Street expectations for earnings of $1.49 per share on revenue of $622.1mln. Revenue fell 23.4% compared to the same quarter a year ago.

Shares of Mallinckrodt jumped 9.5% to US$26.65.

H.P. Acthar Gel, or repository corticotropin injection sales grew 8.2% to $293.2 million and INOMAX, or nitric oxide gas sales rose 4.4% to $131.0 million.

“We continue to see good performance across our hospital products, especially Inomax, and Ofirmev,” said Mallinckrodt CEO Mark Trudeau.

“HP Acthar Gel performed essentially as expected in the quarter, and we were pleased with the positive preliminary data related to the drug in rheumatoid arthritis and multiple sclerosis presented in the quarter,” he added.

For 2018, the company raised its adjusted EPS guidance range to US$6.50 to US$6.90 from US$6.00 to US$6.50 and its sales growth outlook to 4% to 7% from 3% to 6%.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive 

Story by ProactiveInvestors