In the face of a flurry of lawsuits that alleged the Irish-tax registered generic drugmaker Mallinckrodt Pharmaceuticals of allegedly fuelling up an opioid epidemic in the United States, the United Kingdom-headquartered pharmaceutical had sought for bankruptcy protection in a filing with the US Bankruptcy Court for the District of Delaware on Monday.
In tandem, the company, which bankruptcy filing would put an end to its opioid claims alongside wipe out shares, said in the filing that it listed both assets and liabilities in the range between $1 to $10 billion. Aside from that, the Irish-tax registered pharmaceutical had also added at its bankruptcy filing that the company would try reducing its debts by roughly $1.3 billion and would try to resolve the opioid related claims, though the generic drug maker would try to see through the bankruptcy proceedings with cash on hand alongside the cashes generated from operations and no debtor-in-possession loan deal could not be reached.
Mallinckrodt agrees to pay $1.6 billion to settle opioid claims
In point of fact, at its bankruptcy filings with the US Bankruptcy court in the District of Delaware, Mallinckrodt was quoted saying that it would be paying off a stark sum of $1.6 billion over several years in order to settle the opioid-related claims, while the company had agreed to pay a one-time $450 million once the company would be emerged from the court protection.
Adding further strains, back in the March this year, the Pharmaceutical company had lost to a courtroom battle that accused it of averting higher rebates to state Medicaid programs over its top-selling Multiple Sclerosis drug.
Nonetheless, according to the court documents revealed late on Monday, Mallinckrodt had agreed to lay off a total of $260 million over the next seven years which in effect would settle its rebate-related disputes with state Medicaid programs, while the company had also agreed to a pay out of $200 million in the first and second year following emergence from its bankruptcy on the opioid-related lawsuit.
Mallinckrodt would pay off the remaining of a $1.6 billion in opioid claims over the next seven consecutive years, while each year would require a pay-out of $150 million, court documents revealed. Notably, an American has been dying due to opioid overdoses in every fifteen minutes, court documents reveal.