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 The company listed both assets and liabilities in the range of $1
billion to $10 billion in a filing with the U.S. Bankruptcy Court
for the District Of Delaware.
More than 3,000 lawsuits have been filed accusing drug manufacturers
of engaging in deceptive marketing that promoted the use of
addictive painkillers, fueling an epidemic that since 1999 has
resulted in more than 450,000 overdose deaths.
The company had in February said it planned to have its generic drug
business file for bankruptcy as part of a tentative $1.6 billion
opioid settlement to resolve claims by state attorneys general and
U.S. cities and counties.
It further warned on Aug. 4 the parent company and other units may
also seek bankruptcy protection after a judge allowed the federal
government to force it to pay higher rebates to state Medicaid
programs for its multiple-sclerosis drug H.P. Acthar Gel.
Its per-vial price has risen from about $50 in 2001 to $38,892 in
2019 and it generated 30.1% of the company's net sales last year.
The drugmaker said it will implement a restructuring support
agreement that would provide for an amended proposed opioid claims
settlement and a financial restructuring.
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"The company has agreed to pay $260 million over seven years and
reset Acthar Gel's Medicaid rebate calculation as of July 1, 2020,
such that state Medicaid programs will receive 100% rebates on
Acthar Gel Medicaid sales, based on current Acthar Gel pricing,"
Mallinckrodt said in a statement.
During the bankruptcy protection, the company said it aims to
resolve opioid-related claims and to reduce its debt by about $1.3
billion, while surviving on cash on hand and cash generated from
operations.
(Reporting by Nate Raymond in Boston and Rama Venkat in Bengaluru;
Editing by Aditya Soni and Arun Koyyur)
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