BMO Capital analyst Gary Nachman lowered his price target on Mallinckrodt to $23 after the company disclosed a lawsuit against the U.S. Health and Human Services and Centers for Medicare & Medicaid Services regarding its recent decision on rebates for the company's Acthar Gel. The analyst also keeps his Outperform rating on the stock and believes that the decision should be "kept in perspective", noting that while the news could potentially eliminate Acthar's Medicaid revenue, those sales only account for about 3% of the company's total sales. Nachman maintains that if Achthar can gain "better stability with improvements in contracting payers", the business can be viewed as "underappreciated."