Mallinckrodt mulling bankruptcy protection for generics unit

Ireland-based Mallinckrodt is reportedly considering filing for chapter 11 bankruptcy protection for its U.S.-based generic unit.

According to the Wall Street Journal, the company is looking to address incoming debt maturities and liabilities related to opioid litigation. Mallinckrodt is one of the largest opioid makers in the U.S. and like several other companies, has been hit with a slew of lawsuits related to its marketing and distribution of opioid products. Last year, it reached a $30 million settlement with the state of Ohio to avoid a landmark opioid trial. 

Its generics unit generated $545 million in revenue during the first three quarters of last year. But the company has reportedly accrued nearly $6 billion in debt.

If it files for bankruptcy, it will be the third major company to sink from opioid-related costs. Both Purdue Pharma and Insys Therapeutics filed for chapter 11 protection last year.

Read the Wall Street Journal report.