At What Point Is MNK Selective Disclosure Complete Fraud?

Company hides clinical results from investing public.

Caught in the cross-hairs of drug pricing scandals and the opioid epidemic, Mallinckrodt has found itself the subject of not one but two 60 Minutes exposes over the past six months.  This is a feat so dubious that the only name mentioned more frequently is Kabul, Afghanistan.

However, the controversy should now come to an end.

There was never a debate whether Mallinckrodt’s overpriced H.P. Acthar Gel accounted for a majority of the Company’s earnings.  This was something recognized by both bulls and bears.

The key debate was whether the Company could stabilize declines in Acthar and produce data to support the drug’s efficacy.

Now, here are the results of a robust study published in this months American Society of Nephrology.

“The trial was stopped at a preplanned interim analysis after enrollment of 31 participants because of a lack of discernible treatment efficacy.”

In other words, the data was so bad there was no reason to continue the study.