Mallinckrodt The Latest To Feel Citron's Wrath, Has 'Significant More Downside' Than Valeant

• Shares of Mallinckrodt PLC MNK were trading down more than 17 percent on Monday afternoon.
• The decline was triggered by a tweet from Citron Research ‏(@CitronResearch), which read, “At these prices $MNK has signif more downside than $VRX-- far worse offender of the reimb sys - more to follow. VRX can't live in a vacuum.”
• The stock had been halted three times by Monday at 3 PM.

Mallinckrodt PLC was the latest to feel Citron Research’s wrath. After a hard-fought battle with Valeant Pharmaceuticals Intl Inc VRX, it’s now the Dublin, Ireland-based company that’s in Andrew Left’s focus.

Related Link: Citron's Andrew Left Responds To Valeant's Declarations About His Report: 'I Put Out Information That Turned Out To Be True'

After the firm’s tweet, Left told Business Insider that, “The market has been so focused on Valeant that they forgot about other platform companies who are levered and face the same headwinds in reimbursement.”

He continued, “We already see these challenges at Malinkrodt [sic], and while Valeant has been taking all the heat, the business model of Malinkrodt [sic] is just as if not more in danger of unraveling.”

As author Julia La Roche noted, this is not the first time that Mallinckrodt is in the eye of the storm. Back in September, the stock experienced a steep sell-off following the Martin Shkreli-price gouging saga.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.