Drugmaker Mallinckrodt PLC is considering filing for bankruptcy protection again, according to a report by The Wall Street Journal. The company is facing a number of challenges, including lawsuits alleging it helped fuel the opioid epidemic, a dispute with regulators over its Acthar Gel medication, and a high debt load.
Mallinckrodt filed for bankruptcy protection in 2020, but emerged from bankruptcy in 2022. However, the company's financial situation has worsened since then. In March, Mallinckrodt lost a court battle to avoid paying higher rebates to state Medicaid programs for its top-selling drug, Acthar Gel. The company is also facing a number of lawsuits alleging it helped fuel the opioid epidemic.
A bankruptcy filing by Mallinckrodt would likely have a significant impact on its creditors, employees, and patients. The company's creditors could lose money, and its employees could be laid off. Patients who rely on Mallinckrodt's products could face disruptions in their care.
Mallinckrodt has not yet made a decision about whether to file for bankruptcy. The company is still in talks with creditors and other stakeholders. However, the Wall Street Journal report suggests that a bankruptcy filing is becoming increasingly likely.
If Mallinckrodt does file for bankruptcy, it would be the latest in a series of drugmakers that have been forced into bankruptcy due to the opioid epidemic. Other drugmakers that have filed for bankruptcy in recent years include Purdue Pharma, Insys Therapeutics, and Johnson & Johnson.
The opioid epidemic is a major public health crisis in the United States. Millions of people have become addicted to opioids, and tens of thousands of people have died from opioid overdoses. The drugmakers that have been accused of contributing to the opioid epidemic have faced a wave of lawsuits.
The bankruptcy of Mallinckrodt would be a significant development in the opioid epidemic. It would be a sign that the drugmakers that have been accused of contributing to the crisis are facing financial pressure. It would also be a reminder of the human cost of the opioid epidemic.
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