Market Overview

The $1 Million Checkmate: Andrew Left On Mallinckrodt

The $1 Million Checkmate: Andrew Left On Mallinckrodt

Shares of Valeant Pharmaceuticals Intl Inc (NYSE: VRX) spiked on Monday, driven by news that Citron Research's Andrew Left is now long the stock, following several major changes in the company. He did confirm to Benzinga the ownership of some out-of-the-money puts, usually used as short investment vehicles.

On Tuesday, the analyst appeared on CNBC to talk about his long stake in Valeant, but ended up discussing Mallinckrodt PLC (NYSE: MNK) as well, disclosing a short position in the company.

Related Link: Valeant Spikes After Andrew Left Says He's Long The Stock, Out-Of-Money Puts

The Latest Target

Left called the company the "poster child" for price gouging back in March. "Mallinckrodt makes Valeant look like a bunch of choirboys," Left told Real Money at the time.

Forty percent of the Mallinckrodt’s revenue comes from Acthar, a drug that hasn't been properly tested, Left assured. The tests were conducted half a decade ago, when all a drug needed was to prove safe, not effective. "There is no evidence based medicine here," he stated, suggesting the company was paying off doctors to prescribe the drug.

In fact, Left offered to donate $1 million of his own money to multiple sclerosis research if the company agreed to test one of its two flagship products.

"If Valeant had done what Mallinckrodt is doing I think [Congress] would've taken [Former CEO] Pearson… [and] water boarded him on Guantanamo Bay or something. I mean, this is really bad," he added.

Mallinckrodt’s Response

After Left appeared on CNBC, Mallinckrodt said in statement it, "has made great strides in successfully transforming itself into a well-diversified specialty pharmaceutical company that is consistently meeting or exceeding expectations," citing its most recent quarterly results and guidance as evidence.

"Our growth plan is based on volume. Pricing is a consideration only where a product may be undervalued in the market or to maintain sustainability. Any modest price increases we do take is offset by contracting discounts offered to managed care," the statement continued.

Latest Ratings for VRX

Jun 2018TD SecuritiesDowngradesBuyHold
Jun 2018BarclaysUpgradesEqual-WeightOverweight
May 2018MizuhoUpgradesNeutralBuy

View More Analyst Ratings for VRX
View the Latest Analyst Ratings

Posted-In: Analyst Color Biotech Long Ideas Short Sellers Short Ideas Analyst Ratings Movers Media Best of Benzinga


Related Articles (VRX + MNK)

View Comments and Join the Discussion!

Monday's Rally All For Naught

Should We Be Worried About China's Debt Levels? Larry Fink Thinks So