Mallinckrodt Reports Third Quarter 2025 Financial Results
Mallinckrodt plc, a global developer and manufacturer of branded therapeutics, has released its financial results for the third quarter of 2025. The report includes the combined business results following the completion of Mallinckrodt’s merger with Endo, Inc. on July 31, 2025, and the spin-off of its generics and sterile injectables businesses under the name Par Health, Inc.
Financial Highlights
For the third quarter of 2025, Mallinckrodt reported total net sales of $753.1 million, a 49.0% increase from $505.5 million in the same period of 2024. The company's net loss for the quarter was $291.1 million, compared to a net loss of $26.2 million in the third quarter of 2024. This increase in net loss was primarily due to $123.3 million of compensation expenses related to the merger, $93.8 million of cash costs related to the merger and separation of Par Health, and $148.8 million of non-cash expenses related to fair value adjustments of inventory and intangible assets.
Business and Operational Highlights
The Specialty Brands segment, which includes Acthar Gel and XIAFLEX, reported net sales of $416.0 million, a 45.5% increase from $286.0 million in the third quarter of 2024. Acthar Gel net sales increased by 43.5% to $181.4 million. The Generics and Sterile Injectables segment reported net sales of $337.1 million, a 53.6% increase from $219.5 million in the same period of 2024.
Strategic Initiatives and Corporate Developments
Mallinckrodt has completed the spin-off of its generics and sterile injectables businesses under the name Par Health, Inc. and introduced the combined branded therapeutics business, Keenova Therapeutics. Keenova is expected to benefit from approximately $75.0 million of pre-tax, run-rate synergies in the first 12 months post-merger and at least $150.0 million of annual pre-tax, run-rate synergies by year three post-merger.
Management's Perspective
Siggi Olafsson, President and CEO, expressed excitement about the future of Keenova Therapeutics, highlighting the strong performance of Acthar Gel and the initiation of a new clinical program for XIAFLEX focused on hammertoe. Olafsson emphasized the enhanced resources, focus, and scale following the merger with Endo and the Par Health spin-off.
Future Outlook
Keenova has raised its full-year net sales growth guidance for Acthar Gel from a range of 20% to 30% to a range of 30% to 35%. For the fourth quarter of 2025, Keenova expects net sales of $485 million to $505 million and adjusted EBITDA of $155 million to $165 million.
Original SEC Filing: Mallinckrodt plc [ MCKPF ] - 8-K - Nov. 10, 2025