Mallinckrodt Tops Q4 Expectations

Mallinckrodt PLC MNK reported better-than-expected results for its fiscal fourth quarter on Monday. The Dublin, Ireland-based company posted quarterly net income from continuing operations of $90.0 million, or $0.76 per share, versus a year-ago loss from continuing operations of $173.5 million, or a $2.04 per share. Adjusted earnings rose to $1.84 per share from $1.59 per share. Its net sales climbed 31 percent year-over-year to $882.4 million from $673.7 million. However, analysts were expecting earnings of $1.77 per share on revenue of $870.5 million. Net sales for Specialty Brands Segment climbed to $468.7 million for the fourth quarter, versus $213.9 million for the year-ago quarter. Net sales for Specialty Generics Segment slipped to $296.7 million from $350.9 million, while sales for the Nuclear Imaging segment slipped to $103.6 million from $104.5 million. During the fourth quarter, Mallinckrodt repurchased 0.8 million shares. Adjusted gross profit as a percentage of net sales expanded to 72.4 percent from 66.5 percent. SG&A expenses increased to $302.9 million from $251.7 million. "2015 was another pivotal year for Mallinckrodt. We were particularly pleased that fourth quarter and full year net sales were driven by volume growth," said Mark Trudeau, President and Chief Executive Officer. "Mallinckrodt's successful 'acquire to invest' growth strategy differentiates us from other specialty pharmaceutical companies as we typically focus on acquiring highly durable, under-resourced therapies that offer effective treatment alternatives for small, underserved and poorly penetrated patient populations." Mallinckrodt shares gained 1.55 percent to close at $61.01 on Friday.