Mallinckrodt raises forecast after strong third quarter

Dublin-based drugs business Mallinckrodt reported a sharp rise in sales of specialty branded products in the third quarter, more than offsetting falling sales of generics and in its nuclear imaging business.

The company said it now expects full year earnings to come in above the high end of the previous range of $8.15 to $8.50 a share.

Total sales were up 10.6 per cent to $970.6 million in the three months to June 24th. Sales of specialty brands were 32 per cent ahead but the company’s generics business suffered a 14.5 per cent decline on the back of increased competition. Nuclear imaging sales were 4.4 per cent weaker.

Chief executive Mark Trudeau said the company's "acquire to invest" strategy was working. "We are making steady progress in building a healthy speciality pharmaceutical company and are creating near and long-term value for patients and shareholders," he said.

Interest costs amounted to $95.6 million, or close to half of $202.9 million operating profit. That compares with operating profit of $127 million in the 2015 period.

Earnings per shares on a diluted basis were $1.79 compared to 47 cent in the third quarter last year.

Mallinckrodt was spun out of Covidien in a $2 billion flotation in 2013