Mallinckrodt CEO Responds To Citron Allegations: 'We Are Playing The Long Game With' Acthar

• Shares of Mallinckrodt PLC MNK continued to tumble on Tuesday after falling 17 percent and being halted several times in Monday’s session.
• The decline was triggered by a tweet from Citron Research, which read, "At these prices $MNK has signif more downside than $VRX-- far worse offender of the reimb sys"
• On Tuesday, Mallinckrodt CEO Mark Trudeau appeared on CNBC’s Squawk Box and responded to Citron's allegations.

According to Citron's Andrew Left, Mallinckrodt is a levered company that will face strong headwinds in reimbursement. "The business model of Mallinckrodt [sic] is just as if not more in danger of unraveling," Left told Business Insider.

Related Link: Mallinckrodt The Latest To Feel Citron's Wrath, Has Significantly More Downside Than Valeant

In an attempt to provide some tranquility to shareholders and potential investors, Mallinckrodt CEO Mark Trudeau appeared on CNBC on Tuesday, responding to Citron’s contentions.

"We are having very good success now in getting Acthar into favorable formulary positions, which (…) should ensure long-term stability in reimbursement for Acthar, which is what we are all about," Trudeau assured. "We are playing the long game with this product, because it's very durable, it's very effective for a variety of autoimmune conditions, and it's one that we think is going to continue to drive value for the company."

The CEO explained, "What we do find is that as we have gone in and spoken to payers about how to best position Acthar for the appropriate patient types, we're getting very good traction and good dialogue with those payers."

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.