Stifel downgrades Mallinckrodt to Hold with sentiment seen staying low
As previously reported, Stifel analyst Annabel Samimy downgraded Mallinckrodt to Hold from Buy. Samimy said he cannot prove or disprove the alleged improper Acthar distribution and Medicare claims made against Mallinckrodt in a recently filed whistleblower lawsuit, but he believes that the "singularly persistent" overhang of Acthar will not lift in the near-term, regardless of the strength of the company's upcoming pipeline opportunities. The analyst thinks it is prudent to step to the side until the Acthar overhang, coupled with the overhang of opioid litigation, has more clarity toward resolution, he tells investors. Samimy lowered his price target on Mallinckrodt shares to $15 from $50.