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Mallinckrodt -12% as short seller Left claims CEO commits fraud

Published 11/16/2016, 06:18 PM
Mallinckrodt -12% as short seller Left claims CEO commits fraud
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  • Mallinckrodt (NYSE:MNK) plunged 12% in today's trade after short seller Andrew Left accused CEO Mark Trudeau of committing securities fraud.
  • "Trudeau has been caught red handed committing securities fraud - exposed by none other than the newly released Medicare drug-spending dashboard," according to Citron Research editor Left, who called into question MNK's Acthar Gel sales derived from government sources such as Medicaid and Medicare.
  • Leerink analysts say the report attempts to question whether the government should be paying Acthar’s average $80K-$100K net price per patient per year and calling it to the attention of government figures who have been targeting excessive drug pricing issues, in the type of issue that became a major headache for Mylan (NASDAQ:MYL) recently with EpiPen.


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