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Mallinckrodt plc Reports Financial Results for Second Quarter 2025 and Provides Guidance

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Mallinckrodt (MNK) reported Q2 2025 financial results and provided guidance following its merger with Endo. Legacy Mallinckrodt achieved net sales of $485.1M (down 5.7% YoY, but up 8.5% excluding Therakos divestiture) and net income of $2.4M. Legacy Endo reported flat revenues of $447.8M with a net loss of $59.6M.

Key highlights include Acthar Gel's highest growth in over a decade (up 48.8% to $175.1M) and XIAFLEX's 9.4% growth to $138.6M. The combined company projects 2025 net sales of $3.57B-$3.62B and adjusted EBITDA of $1.10B-$1.13B. The planned spin-off of Par Health remains on track for Q4 2025, with expected net sales of $1.72B-$1.75B.

The company raised Acthar Gel's 2025 growth guidance to 20-30% from high-single digits and reaffirmed XIAFLEX's high-single digit growth outlook.

Mallinckrodt (MNK) ha comunicato i risultati finanziari del secondo trimestre 2025 e fornito le previsioni dopo la fusione con Endo. La Mallinckrodt storica ha registrato vendite nette per 485,1 milioni di dollari (in calo del 5,7% su base annua, ma in crescita dell'8,5% escludendo la cessione di Therakos) e un utile netto di 2,4 milioni di dollari. Endo storica ha riportato ricavi stabili a 447,8 milioni di dollari con una perdita netta di 59,6 milioni di dollari.

I punti salienti includono la crescita più alta di oltre un decennio per Acthar Gel (in aumento del 48,8% a 175,1 milioni di dollari) e la crescita del 9,4% di XIAFLEX a 138,6 milioni di dollari. La società combinata prevede vendite nette per il 2025 tra 3,57 e 3,62 miliardi di dollari e un EBITDA rettificato tra 1,10 e 1,13 miliardi di dollari. La prevista scissione di Par Health è confermata per il quarto trimestre 2025, con vendite nette attese tra 1,72 e 1,75 miliardi di dollari.

La società ha alzato la previsione di crescita per Acthar Gel nel 2025 al 20-30% rispetto a una crescita a una cifra alta e ha confermato la previsione di crescita a una cifra alta per XIAFLEX.

Mallinckrodt (MNK) informó los resultados financieros del segundo trimestre de 2025 y proporcionó previsiones tras su fusión con Endo. Mallinckrodt histórica alcanzó ventas netas de 485,1 millones de dólares (una caída del 5,7% interanual, pero un aumento del 8,5% excluyendo la venta de Therakos) y un ingreso neto de 2,4 millones de dólares. Endo histórica reportó ingresos estables de 447,8 millones de dólares con una pérdida neta de 59,6 millones de dólares.

Entre los aspectos destacados se incluyen el mayor crecimiento en más de una década de Acthar Gel (un aumento del 48,8% a 175,1 millones de dólares) y el crecimiento del 9,4% de XIAFLEX a 138,6 millones de dólares. La compañía combinada proyecta ventas netas para 2025 entre 3,57 y 3,62 mil millones de dólares y un EBITDA ajustado de entre 1,10 y 1,13 mil millones de dólares. La escisión planificada de Par Health sigue en marcha para el cuarto trimestre de 2025, con ventas netas esperadas de entre 1,72 y 1,75 mil millones de dólares.

La empresa elevó la previsión de crecimiento para Acthar Gel en 2025 al 20-30% desde un crecimiento de un solo dígito alto y reafirmó la perspectiva de crecimiento de un solo dígito alto para XIAFLEX.

Mallinckrodt (MNK)는 Endo와의 합병 후 2025년 2분기 재무 실적을 발표하고 가이던스를 제시했습니다. 기존 Mallinckrodt는 순매출 4억 8,510만 달러(전년 대비 5.7% 감소했으나 Therakos 매각 제외 시 8.5% 증가)와 순이익 240만 달러를 기록했습니다. 기존 Endo는 매출 4억 4,780만 달러로 변동 없었으며 순손실 5,960만 달러를 보고했습니다.

주요 하이라이트로는 Acthar Gel이 10년 만에 가장 높은 성장률(48.8% 증가하여 1억 7,510만 달러)과 XIAFLEX가 9.4% 성장하여 1억 3,860만 달러를 기록한 점이 포함됩니다. 합병된 회사는 2025년 순매출 35억 7천만~36억 2천만 달러와 조정 EBITDA 11억~11억 3천만 달러를 예상합니다. Par Health의 분사는 2025년 4분기로 예정되어 있으며, 예상 순매출은 17억 2천만~17억 5천만 달러입니다.

회사는 Acthar Gel의 2025년 성장 가이던스를 기존의 한 자릿수 후반에서 20-30%로 상향 조정했으며, XIAFLEX의 한 자릿수 후반 성장 전망을 재확인했습니다.

Mallinckrodt (MNK) a publié ses résultats financiers du deuxième trimestre 2025 et donné ses prévisions suite à sa fusion avec Endo. Mallinckrodt historique a réalisé des ventes nettes de 485,1 millions de dollars (en baisse de 5,7 % en glissement annuel, mais en hausse de 8,5 % hors cession de Therakos) et un résultat net de 2,4 millions de dollars. Endo historique a affiché des revenus stables de 447,8 millions de dollars avec une perte nette de 59,6 millions de dollars.

Les points forts incluent la croissance la plus élevée depuis plus d'une décennie pour Acthar Gel (en hausse de 48,8 % à 175,1 millions de dollars) et la croissance de 9,4 % de XIAFLEX à 138,6 millions de dollars. La société combinée prévoit des ventes nettes entre 3,57 et 3,62 milliards de dollars pour 2025 et un EBITDA ajusté entre 1,10 et 1,13 milliard de dollars. La scission prévue de Par Health reste prévue pour le quatrième trimestre 2025, avec des ventes nettes attendues entre 1,72 et 1,75 milliard de dollars.

L'entreprise a relevé ses prévisions de croissance pour Acthar Gel en 2025 à 20-30 % contre une croissance à un chiffre élevé et a confirmé ses perspectives de croissance à un chiffre élevé pour XIAFLEX.

Mallinckrodt (MNK) hat die Finanzergebnisse für das zweite Quartal 2025 veröffentlicht und Prognosen nach der Fusion mit Endo abgegeben. Das ursprüngliche Mallinckrodt erzielte Nettoverkäufe von 485,1 Mio. USD (ein Rückgang von 5,7 % im Jahresvergleich, aber ein Anstieg von 8,5 % ohne Berücksichtigung der Therakos-Veräußerung) und einen Nettoertrag von 2,4 Mio. USD. Das ursprüngliche Endo meldete stabile Umsätze von 447,8 Mio. USD mit einem Nettoverlust von 59,6 Mio. USD.

Zu den wichtigsten Highlights zählen das höchste Wachstum von Acthar Gel seit über einem Jahrzehnt (plus 48,8 % auf 175,1 Mio. USD) und das 9,4 % Wachstum von XIAFLEX auf 138,6 Mio. USD. Das kombinierte Unternehmen prognostiziert für 2025 Nettoverkäufe von 3,57 bis 3,62 Mrd. USD und ein bereinigtes EBITDA von 1,10 bis 1,13 Mrd. USD. Die geplante Ausgliederung von Par Health ist für das vierte Quartal 2025 weiterhin geplant, mit erwarteten Nettoverkäufen von 1,72 bis 1,75 Mrd. USD.

Das Unternehmen hat die Wachstumsprognose für Acthar Gel im Jahr 2025 von hohen einstelligen Prozenten auf 20-30 % erhöht und die Prognose für ein hohes einstelligen Wachstum bei XIAFLEX bestätigt.

Positive
  • Net income improved to $2.4M from a $43.3M loss in Q2 2024
  • Acthar Gel sales surged 48.8% to $175.1M, marking highest growth in over a decade
  • XIAFLEX revenues grew 9.4% to $138.6M
  • Core business growth of 8.5% excluding Therakos divestiture
  • Raised Acthar Gel's 2025 growth guidance to 20-30% from high-single digits
Negative
  • Legacy Mallinckrodt's reported net sales declined 5.7% to $485.1M
  • Legacy Endo reported net loss of $59.6M compared to $6.4B profit in Q2 2024
  • Specialty Generics segment sales decreased 7.9% due to competitive pressures
  • Adjusted EBITDA declined for both companies (Mallinckrodt: -21.1%, Endo: -14.8%)
  • Sterile Injectables facing competitive pressure on key products

Insights

Mallinckrodt shows strong momentum with impressive Acthar growth, offsetting divestiture impact and positioning well post-merger with Endo.

The Q2 results from Mallinckrodt tell a compelling story of strategic transformation. While headline numbers show a 5.7% year-over-year revenue decline to $485.1 million, this masks the underlying strength - excluding the Therakos divestiture, net sales actually grew 8.5%. Most impressive is Acthar Gel's performance, growing 48.8% to $175.1 million, marking its strongest growth in over a decade. This dramatic turnaround for a mature product suggests successful commercial execution.

On profitability, Mallinckrodt delivered $137.2 million in Adjusted EBITDA with substantial gross margin expansion from 37.9% to 47.8%. The return to positive net income ($2.4 million vs. a $43.3 million loss) signals stabilization of the core business.

For Endo, results were more mixed with flat revenues of $447.8 million, though up 2.0% excluding divestitures. Their XIAFLEX franchise continues as a growth driver, up 9.4% to $138.6 million. The sterile injectables segment faces headwinds from competition, but new formulations like ADRENALIN ready-to-use premixed bags offer potential offset.

The forward guidance for the combined entity targets $3.57-3.62 billion in revenue and $1.10-1.13 billion in Adjusted EBITDA, with particularly aggressive projections for Acthar Gel (growth raised from high-single digits to 20-30%). The planned Par Health spin-off in Q4 2025 will create a focused generics and sterile injectables business expected to generate $1.72-1.75 billion in revenue and $450-470 million in Adjusted EBITDA.

This merger creates a more diversified specialty pharmaceutical company with complementary portfolios and significant cost synergy potential. The transformation of Acthar from a struggling legacy product to a growth driver suggests management's commercial strategy is working effectively, though competitive pressures in generics and sterile injectables bear watching.

Legacy Mallinckrodt Second Quarter 2025 Results

Delivers Second Quarter Net Sales of $485.1 Million, Reflecting a 5.7% Year-Over-Year Decrease on a Reported Basis; Excluding Impact of Therakos® Divestiture, Net Sales Grew 8.5%

Reports Net Income of $2.4 Million and Adjusted EBITDA of $137.2 Million

Achieved Highest Acthar® Gel (repository corticotropin injection) Net Sales Growth in Over a Decade

Legacy Endo Second Quarter 2025 Results

Delivers Second Quarter Total Revenues of $447.8 Million, Flat on a Reported Basis;

Excluding Impact of Divested International Segment, Revenues Grew 2.0%

Achieved XIAFLEX® (Collagenase Clostridium Histolyticum) 9.4% Year-Over-Year Revenue Growth

Combined Company Full-Year 2025 Guidance

Expects Total Company 2025 Net Sales of $3.57 Billion to $3.62 Billion and Adjusted EBITDA of $1.10 Billion to $1.13 Billion

Expects Par Health 2025 Net Sales of $1.72 Billion to $1.75 Billion and Adjusted EBITDA of $450 Million to $470 Million

DUBLIN, Aug. 6, 2025 /PRNewswire/ -- Mallinckrodt plc ("Mallinckrodt" or the "Company") today reported its financial results for the second quarter ended June 27, 2025, the last quarter prior to its merger with Endo, Inc. ("Endo"), which occurred on July 31, 2025. The Company is also providing financial results for Endo on a standalone basis for the quarter ended June 30, 2025.

"We are excited to be moving forward as a global, scaled, diversified therapeutics leader following the completion of the merger of Mallinckrodt and Endo last week," said Siggi Olafsson, President and Chief Executive Officer. "With greater diversification and enhanced scale and capabilities, we see significant growth and value creation opportunities ahead for our combined business, and we look forward to working as one team to deliver on the compelling benefits of this merger for our shareholders, customers, employees and, ultimately, the patients we serve."

Mr. Olafsson continued, "The results for both legacy businesses in the second quarter underscore our confidence as we enter this new chapter together. Mallinckrodt's performance demonstrates continued positive momentum and strong execution, including the highest quarter of growth for the Acthar® Gel brand in more than a decade. Endo also continued advancing key growth drivers, as evidenced by strong XIAFLEX® performance and the advancement of the Sterile Injectables pipeline. Both teams have done tremendous work to position our combined company for success, carefully executing our integration plan while continuing to meet important business objectives. I am grateful for their efforts and dedication to our future as one company."

Par Health Spin-Off Update

The Company continues to make progress toward the planned spin-off of the combined generics pharmaceuticals and sterile injectables business, Par Health. With financing secured for the merger, the Company is well positioned to move forward with the spin-off in the fourth quarter of 2025, subject to approval by Mallinckrodt's Board of Directors and other conditions. Until the spin-off, Par Health will continue to operate as a fully owned business of the merged company.

Legacy Mallinckrodt Second Quarter 2025 Financial Results

Legacy Mallinckrodt's net sales in the second quarter of 2025 were $485.1 million, compared to $514.3 million in the second quarter of 2024. This reflects a 5.7% decrease on a reported and constant currency basis. Excluding the impact of the Therakos® divestiture, total net sales grew by 8.5%.

The Specialty Brands segment reported net sales of $264.3 million in the second quarter of 2025, compared to $274.5 million in the second quarter of 2024. This 3.7% decrease includes the impact of the Therakos divestiture. Excluding Therakos, Specialty Brands net sales grew by 27.5%, driven primarily by growth in Acthar Gel and continued uptake in the SelfJect™ device. Acthar Gel net sales increased $57.4 million, or 48.8%, compared to the second quarter of 2024 to $175.1 million.

The Specialty Generics segment reported net sales of $220.8 million in the second quarter of 2025, compared to $239.8 million in the second quarter of 2024. This 7.9% decrease was driven primarily by competitive pressures on finished dosage opioids and Acetaminophen (APAP) products, somewhat offset by strong performance in finished dose attention deficit hyperactivity disorder (ADHD) and Addiction Treatment product families.

Gross profit in the second quarter of 2025 increased $36.8 million, or 18.9%, to $231.8 million, compared to $195.0 million in the second quarter of 2024. Gross profit margin was 47.8% in the second quarter of 2025, compared with 37.9% in the second quarter of 2024.

Adjusted EBITDA in the second quarter of 2025 was $137.2 million, compared to $174.0 million in the second quarter of 2024, driven by strength in Acthar Gel, largely offset by the impact of the Therakos divestiture, incremental commercial investments for Acthar Gel and the impact of nitric oxide competition in the U.S.

Net income for the second quarter of 2025 was $2.4 million, an improvement from a net loss of $43.3 million in the second quarter of 2024.

Legacy Endo Second Quarter 2025 Financial Results

Legacy Endo's total revenues in the second quarter of 2025 were $447.8 million, flat compared to $446.6 million in the combined second quarter of 2024. Excluding the International Pharmaceuticals business, which was divested in the second quarter, total revenues increased by 2.0%.

The Branded Pharmaceuticals segment reported revenues of $227.9 million in the second quarter of 2025, compared to $225.1 million in the combined second quarter of 2024. This change was led by strong XIAFLEX and SUPPRELIN® LA (histrelin acetate) revenue growth. XIAFLEX revenues increased 9.4% to $138.6 million, compared to $126.6 million in the combined second quarter of 2024.

The Sterile Injectables segment reported revenues of $87.4 million in the second quarter of 2025, compared to $90.8 million in the combined second quarter of 2024. This change was primarily driven by competitive pressure on ADRENALIN® vials and VASOSTRICT®, which was partially offset by increased revenues from ADRENALIN ready-to-use premixed bag products as well as increased volumes across other sterile injectables products.

The Generic Pharmaceuticals segment reported revenues of $119.0 million in the second quarter of 2025, compared to $110.1 million in the combined second quarter of 2024. This change was primarily driven by increased revenue from lidocaine patch 5%.

The International Pharmaceuticals segment reported revenues of $13.4 million in the second quarter of 2025, compared to $20.7 million in the combined second quarter of 2024. This change was a result of the previously announced divestiture of the International Pharmaceuticals business that was completed on June 17, 2025.

Adjusted EBITDA in the second quarter of 2025 was $149.8 million, compared to $175.8 million in the combined second quarter of 2024, primarily driven by lower adjusted gross margin due to changes in product mix and investments in the Sterile Injectables manufacturing network.

Net loss for the second quarter of 2025 was $59.6 million, compared to net income of $6.4 billion in the combined second quarter of 2024. This change was primarily due to gains arising from the Endo International plc plan of reorganization recorded in the second quarter of 2024 and the application of fresh start accounting.

Adjusted net income in the second quarter of 2025 was $63.9 million, compared to $104.7 million in the combined second quarter of 2024. This change was primarily due to a decrease in adjusted EBITDA coupled with an increase in interest expense.

Please see our website (https://www.MNK-Endo.com) for certain unaudited historical financial information for the combined company on a non-GAAP pro forma basis to supplement the information disclosed in this press release.

Combined Company 2025 Financial Guidance

For the total company for full-year fiscal 2025, the Company expects:


2025 Guidance

Total Net Sales

 $3.57 billion to $3.62 billion

Adjusted EBITDA

 $1.10 billion to $1.13 billion

For the Par Health business for full-year fiscal 2025, the Company expects:


2025 Guidance

Total Net Sales

 $1.72 billion to $1.75 billion

Adjusted EBITDA

 $450 million to $470 million

In addition, the Company is raising 2025 full-year net sales growth guidance for Acthar Gel from a high-single digit range to a 20% to 30% range and reaffirming guidance for high-single digit XIAFLEX revenue growth for full-year 2025.

The aforementioned guidance ranges for Adjusted EBITDA do not include transaction-related compensation expenses related to the merger.

The Company does not provide comparable GAAP measures for its forward-looking non-GAAP guidance or a reconciliation of such measures because the reconciling items described in the definition of Adjusted EBITDA provided below are inherently uncertain and difficult to estimate and cannot be predicted without unreasonable effort. The variability of such items may have a significant impact on our future GAAP results.

Please see "Non-GAAP Financial Measures" included in this release for a discussion of non-GAAP measures and reconciliation of GAAP and non-GAAP financial measures for the second quarter.

Please see the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's Quarterly Report on Form 10-Q for the quarter ended June 27, 2025, to be filed with the U.S. Securities and Exchange Commission (SEC) for additional information.

Second Quarter 2025 Conference Call and Webcast

Mallinckrodt will hold a conference call for investors today, August 6, 2025, at 8:00 a.m. Eastern Time.

The audio webcast may be accessed through https://app.webinar.net/DLBYlR9Jk2m, and to access the call through a conference line, participants may dial 800-836-8184 (U.S. and Canada toll-free) or 646-357-8785 (outside the U.S.). Participants are advised to join 10 minutes prior to the scheduled start time. A replay of the webcast will be available following the event.

About Mallinckrodt

Mallinckrodt is a leading provider of life-enhancing therapeutics focused on addressing unmet patient needs and a world-class manufacturer of high-quality generics, sterile injectables, and active pharmaceutical ingredients.

Our company consists of multiple wholly owned subsidiaries that operate in two businesses. Our Brands business is focused on autoimmune and rare diseases in areas including endocrinology, gastroenterology, hepatology, neonatal respiratory critical care, nephrology, neurology, pulmonology, ophthalmology, orthopedics, rheumatology, and urology. Our Par Health business includes generic drugs, sterile injectables, and active pharmaceutical ingredients. To learn more, visit https://www.MNK-Endo.com.

Mallinckrodt uses its website as a channel of distribution of important company information, such as press releases, investor presentations and other financial information. It also uses its website to expedite public access to time-critical information regarding the Company in advance of or in lieu of distributing a press release or a filing with the U.S. Securities and Exchange Commission ("SEC") disclosing the same information. Therefore, investors should look to the Investor Relations page of the website for important and time-critical information. Visitors to the website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Investor Relations page of the website.

Non-GAAP Financial Measures

This press release contains financial measures, including Adjusted EBITDA, adjusted gross profit, adjusted selling, general, and administrative ("SG&A") expenses, adjusted research and development ("R&D") expenses, net sales growth (loss) on a constant-currency basis, net debt, adjusted net income, adjusted operating expenses, adjusted income taxes, adjusted effective tax rate and EBITDA which are considered "non-GAAP" financial measures under applicable SEC rules and regulations.

The Company has provided these adjusted financial measures because they are used by management, along with financial measures in accordance with GAAP, to evaluate the Company's operating performance and liquidity. In addition, the Company believes that they will be used by investors to measure Mallinckrodt's operating results. Management believes that presenting these adjusted measures provides useful information about the Company's performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance.

These adjusted measures should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. The Company's definition of these adjusted measures may differ from similarly titled measures used by others.

Because adjusted financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, management strongly encourages investors to review the Company's unaudited condensed consolidated financial statements and publicly filed reports in their entirety. A reconciliation of certain of these historical adjusted financial measures to the most directly comparable GAAP financial measures is included in the tables accompanying this release.

Further information regarding non-GAAP financial measures can be found on the Investor Relations page of the Company's website.

Non-GAAP Financial Measures - Mallinckrodt

Adjusted EBITDA 

Adjusted EBITDA represents net income or loss prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP") and adjusted for certain items that management believes are not reflective of the operational performance of the business. Adjustments to GAAP amounts include, as applicable to each measure, interest expense, net; income taxes; depreciation; amortization from intangible assets and right-of use asset resulting from finance leases; combination, integration, and other related expenses; restructuring charges, net; liabilities management and separation costs; divestitures; reorganization items, net; discontinued operations; changes in fair value of contingent consideration obligations; changes in derivative assets and liabilities fair value; unrealized gain or loss on equity investment; share-based compensation; fresh-start inventory related expenses; and other items identified by the Company.

Adjusted gross profit, adjusted SG&A expenses and adjusted R&D expenses

Adjusted gross profit, adjusted SG&A expenses and adjusted R&D expenses represent amounts prepared in accordance with GAAP, adjusted for certain items that management believes are not reflective of the operational performance of the business. Adjustments to GAAP amounts include, as applicable to each measure, the aforementioned items in the Adjusted EBITDA paragraph. The adjustments for these items are on a pre-tax basis for adjusted gross profit and adjusted SG&A expenses.

Segment net sales growth (loss) on a constant-currency basis

Segment net sales growth (loss) on a constant-currency basis measures the change in segment net sales between current- and prior-year periods using a constant currency, the exchange rate in effect during the applicable prior-year period.

Net debt

Net debt of $374.6 million as of June 27, 2025, reflects $863.6 million in total debt outstanding and $8.8 million in undiscounted finance lease liabilities on a GAAP basis less $497.8 million in cash and cash equivalents (unrestricted cash) on a GAAP basis.

Non-GAAP Financial Measures - Endo

Adjusted net income, Adjusted Gross Profit and Adjusted Operating Expenses

Adjusted net income, Adjusted Gross Profit and Adjusted Operating Expenses are presented as non-GAAP measures and are reconciled to their corresponding GAAP measures of Net income (loss), Gross Profit, defined as revenues less cost of revenues, and Operating Expenses, defined as the sum of (i) Selling, general and administrative; (ii) Research and development; (iii) Acquired in-process research and development; (iv) Litigation-related and other contingencies, net; (v) Asset impairment charges; and (vi) Acquisition related and integration items, net.

Adjustments, to the extent they apply to the corresponding GAAP amounts, may include, but are not limited to expense or income related to: acquisitions and divestitures, such as amortization of intangible assets and of inventory step-up adjustments, certain employee-related charges, including earn-outs, separation, retention, or relocation costs, changes in the fair value of contingent consideration, transaction costs of executed deals, and integration or disintegration-related costs; certain amounts related to strategic review initiatives; certain cost reduction initiatives such as separation benefits, continuity payments, other exit costs; asset impairment charges; certain costs incurred in connection with debt or equity-financing activities, such as non-capitalizable transaction costs incurred in connection with a successful financing transaction and gains or losses associated with early repayments, extinguishment or modification of our debt instruments; litigation-related and other contingent matters; certain legal costs; gains or losses from the sales of businesses and other assets; gains or losses associated with discontinued operations, net of tax; foreign currency gains or losses on intercompany financing arrangements; reorganization items, net; the tax effect of adjusted pre-tax income at applicable tax rates and other tax adjustments; and certain other items.

Adjusted gross margin 

Adjusted gross margin represents total revenues less cost of revenues prepared in accordance with GAAP and adjusted for the certain items enumerated above under the heading "Adjusted net income" to the extent such items relate to cost of revenues. Such items may include, but are not limited to, expenses or income related to: acquisitions and divestitures, such as amortization of intangible assets and of inventory step-up adjustments, certain employee-related charges, including earn-outs, separation, retention, or relocation costs, certain amounts related to strategic review initiatives; certain cost reduction initiatives such as separation benefits, continuity payments, contract termination costs and other exit costs; certain integration or disintegration efforts; certain amounts related to strategic review initiatives; amortization of intangible assets and of inventory step-up adjustments; and certain other items.

Adjusted operating expenses

Adjusted operating expenses represent operating expenses prepared in accordance with GAAP and adjusted for certain items enumerated above under the heading "Adjusted net income" to the extent such items relate to operating expenses. Such items may include, but are not limited to expenses or income related to: acquisitions and divestitures, such as certain employee-related charges, including earn-outs, separation, retention, or relocation costs, transaction costs and changes in the fair value of contingent consideration; cost reduction and integration-related initiatives such as separation benefits, continuity payments, other exit costs; certain integration or disintegration efforts; certain amounts related to strategic review initiatives; asset impairment charges; amortization of intangible assets; inventory step-up recorded as part of our acquisitions; litigation-related and other contingent matters; certain legal costs; certain costs incurred in connection with debt or equity-financing activities, such as non-capitalizable transaction costs incurred in connection with a successful financing transaction and gains or losses associated with early repayments, extinguishment or modification of our debt instruments; and certain other items.

Adjusted income taxes and Adjusted effective tax rate

Adjusted income taxes are calculated by tax effecting adjusted pre-tax income and permanent book-tax differences at the applicable effective tax rate that will be determined by reference to statutory tax rates in the relevant jurisdictions in which the Company operates. Adjusted income taxes include current and deferred income tax expense commensurate with the non-GAAP measure of profitability. Adjustments are then made for certain items relating to prior years and for tax planning actions that are expected to be distortive to the underlying effective tax rate and trend in the effective tax rate. The most directly comparable GAAP financial measure for Adjusted income taxes is Income tax expense (benefit), prepared in accordance with GAAP. The Adjusted effective tax rate represents the rate generated when dividing Adjusted income taxes by the amount of adjusted pre-tax income.

EBITDA and Adjusted EBITDA

EBITDA represents Net income (loss) before Interest expense, net; Income tax expense; Depreciation; and Amortization, each prepared in accordance with GAAP. Adjusted EBITDA further adjusts EBITDA by excluding those items enumerated above under the heading "Adjusted net income," without duplication, and stock-based compensation costs.

Because adjusted financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, the Company strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety. Investors are also encouraged to review the reconciliation of the non-GAAP financial measures used in the Earnings Release to their most directly comparable GAAP financial measures as included in the Earnings Release. However, the Company does not provide reconciliations of projected non-GAAP financial measures to GAAP financial measures, nor does it provide comparable projected GAAP financial measures for such projected non-GAAP financial measures. The Company is unable to provide such reconciliations without unreasonable efforts due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for asset impairments, contingent consideration adjustments, legal settlements, gains or losses on extinguishment or modification of debt, adjustments to inventory and other charges reflected in the reconciliation of historic numbers, the amount of which could be significant.

Information Regarding Forward Looking Statements

Statements in this press release that are not strictly historical, including statements regarding future financial condition and operating results of the combined business and Par Health, expected product launches, legal, economic, business, competitive and/or regulatory factors affecting Mallinckrodt's businesses and any other statements regarding events or developments Mallinckrodt believes or anticipates will or may occur in the future, may be "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties.

There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include risks and uncertainties related to, among other things: the expected benefits and synergies of the business combination with Endo ("Business Combination") may not be fully realized in a timely manner, or at all; risks related to Mallinckrodt's increased indebtedness as a result of the Business Combination and significant transaction costs related to the Business Combination; uncertainties related to a future separation of the combined generics pharmaceuticals businesses and sterile injectables business including the risk that the separation may not occur on a timely basis or at all; potential changes in Mallinckrodt's business strategy and performance; exposure to global economic conditions and market uncertainty; the exercise of contingent value rights by the Opioid Master Disbursement Trust II; governmental investigations and inquiries, regulatory actions, and lawsuits, in each case related to Mallinckrodt or its officers; Mallinckrodt's contractual and court-ordered compliance obligations that, if violated, could result in penalties; compliance with and restrictions under the global settlement to resolve all opioid-related claims; matters related to Acthar Gel, including the settlement with governmental parties to resolve certain disputes and compliance with and restrictions under the related corporate integrity agreement; the ability to maintain relationships with Mallinckrodt's suppliers, customers, employees and other third parties following the emergence from the 2023 bankruptcy proceedings ("2023 Bankruptcy Proceedings"); scrutiny from governments, legislative bodies and enforcement agencies related to sales, marketing and pricing practices; pricing pressure on certain of Mallinckrodt's products due to legal changes or changes in insurers' or other payers' reimbursement practices resulting from recent increased public scrutiny of healthcare and pharmaceutical costs; the reimbursement practices of governmental health administration authorities, private health coverage insurers and other third-party payers; complex reporting and payment obligations under the Medicare and Medicaid rebate programs and other governmental purchasing and rebate programs; cost containment efforts of customers, purchasing groups, third-party payers and governmental organizations; changes in or failure to comply with relevant laws and regulations; any undesirable side effects caused by Mallinckrodt's approved and investigational products, which could limit their commercial profile or result in other negative consequences; Mallinckrodt's and its partners' ability to successfully develop, commercialize or launch new products or expand commercial opportunities of existing products, including Acthar Gel (repository corticotropin injection) SelfJect, the INOmax Evolve DS delivery system, and XIAFLEX; Mallinckrodt's ability to successfully identify or discover additional products or product candidates; Mallinckrodt's ability to navigate price fluctuations and pressures, including the ability to achieve anticipated benefits of price increases of its products; competition; Mallinckrodt's and its partners' ability to protect intellectual property rights, including in relation to ongoing and future litigation; limited clinical trial data for Acthar Gel; the timing, expense and uncertainty associated with clinical studies and related regulatory processes; product liability losses and other litigation liability; material health, safety and environmental laws and related liabilities; business development activities or other strategic transactions; attraction and retention of key personnel; the effectiveness of information technology infrastructure, including risks of external attacks or failures; customer concentration; Mallinckrodt's reliance on certain individual products that are material to its financial performance; Mallinckrodt's ability to receive sufficient procurement and production quotas granted by the U.S. Drug Enforcement Administration; complex manufacturing processes; reliance on third-party manufacturers and supply chain providers and related market disruptions; conducting business internationally; Mallinckrodt's significant levels of intangible assets and related impairment testing; natural disasters or other catastrophic events; Mallinckrodt's substantial indebtedness and settlement obligation, its ability to generate sufficient cash to reduce its indebtedness and its potential need and ability to incur further indebtedness; restrictions contained in the agreements governing Mallinckrodt's indebtedness and settlement obligation on Mallinckrodt's operations, future financings and use of proceeds; Mallinckrodt's variable rate indebtedness; Mallinckrodt's tax treatment by the Internal Revenue Service under Section 7874 and Section 382 of the Internal Revenue Code of 1986, as amended; future changes to applicable tax laws or the impact of disputes with governmental tax authorities; the impact of Irish laws; the impact on the holders of Mallinckrodt's ordinary shares if Mallinckrodt were to cease to be a reporting company in the United States; the comparability of Mallinckrodt's post-emergence financial results and the projections filed with the U.S. Bankruptcy Court for the District of Delaware and the lack of comparability of Mallinckrodt's historical financial statements and information contained in its financial statements after the adoption of fresh-start accounting following emergence from the 2023 Bankruptcy Proceedings.

The "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Mallinckrodt's Annual Report on Form 10-K for the fiscal year ended December 27, 2024, its Quarterly Report on Form 10-Q for the quarterly period ended March 28, 2025, and its Quarterly Report for the quarterly period ended June 27, 2025 to be filed with the SEC, its Registration Statement on Form S-4, as amended, filed with the SEC, and other filings with the SEC, all of which are on file with the SEC and available from the SEC's website (www.sec.gov) and Mallinckrodt's website (www.mallinckrodt.com), identify and describe in more detail the risks and uncertainties to which Mallinckrodt's businesses are subject. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business. The forward-looking statements made herein speak only as of the date hereof and Mallinckrodt does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise, except as required by law. Given these uncertainties, one should not put undue reliance on any forward-looking statements

CONTACTS

Investor Relations
Bryan Reasons
Executive Vice President and Interim Chief Financial Officer
bryan.reasons@mnk.com

Media
Michael Freitag / Aura Reinhard / Catherine Simon
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

Mallinckrodt, the "M" brand mark, the Mallinckrodt Pharmaceuticals logo, Endo and the Endo logo are trademarks owned or licensed by a Mallinckrodt company. Other brands are trademarks of a Mallinckrodt company or their respective owners. © 2025.

MALLINCKRODT PLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions, except per share data)










Three Months Ended


June 27,
2025


Percent of

Net sales


June 28,
2024


Percent of

Net sales

Net sales

$            485.1


100.0 %


$             514.3


100.0 %

Cost of sales

253.3


52.2


319.3


62.1

Gross profit

231.8


47.8


195.0


37.9

Selling, general and administrative expenses

150.6


31.0


127.9


24.9

Combination, integration, and other related expenses

22.6


4.7


—


—

Research and development expenses

23.6


4.9


29.2


5.7

Restructuring charges, net

(0.2)


—


0.2


—

Liabilities management and separation costs

2.2


0.5


10.3


2.0

Operating income

33.0


6.8


27.4


5.3

Interest expense

(32.6)


(6.7)


(59.4)


(11.5)

Interest income

5.9


1.2


6.0


1.2

Loss on divestiture

(0.5)


(0.1)


—


—

Other income (expense), net

7.2


1.5


(3.5)


(0.7)

Income (loss) from continuing operations before income taxes

13.0


2.7


(29.5)


(5.7)

Income tax expense

10.7


2.2


13.9


2.7

Income (loss) from continuing operations

2.3


0.5


(43.4)


(8.4)

Income from discontinued operations, net of income taxes

0.1


—


0.1


—

Net income (loss)

$                2.4


0.5 %


$             (43.3)


(8.4) %









Basic income (loss) per share:








Income (loss) from continuing operations

$              0.12




$           (2.20)



Income from discontinued operations

0.01




0.01



Net income (loss)

$              0.12




$           (2.20)



Basic weighted-average shares outstanding

19.7




19.7











Diluted income (loss) per share:








Income (loss) from continuing operations

$              0.11




$             (2.20)



Income from discontinued operations

—




0.01



Net income (loss)

$              0.12




$             (2.20)



Diluted weighted-average shares outstanding

20.1




19.7



 

MALLINCKRODT PLC

CONSOLIDATED ADJUSTED EBITDA

(unaudited, in millions)












Three Months Ended


June 27, 2025


June 28, 2024


Gross
profit

SG&A

R&D

Adjusted
EBITDA


Gross
profit

SG&A

R&D

Adjusted
EBITDA

Net income (loss)

$     231.8

$     150.6

$       23.6

$      2.4


$     195.0

$     127.9

$       29.2

$      (43.3)

Adjustments:










Interest expense, net

—

—

—

26.7


—

—

—

53.4

Income tax expense

—

—

—

10.7


—

—

—

13.9

Depreciation

8.4

(0.6)

(0.1)

9.1


8.0

(0.4)

(0.3)

8.7

Amortization

13.2

—

—

13.2


23.4

—

—

23.4

Combination, integration, and other related
expenses (1)

—

—

—

22.6


—

—

—

—

Restructuring charges, net

—

—

—

(0.2)


—

—

—

0.2

Liabilities management and separation costs (2)

—

—

—

2.2


—

—

—

10.3

Loss on divestiture

—

—

—

0.5


—

—

—

—

Reorganization items, net (3)

—

—

—

—


—

3.3

—

(3.3)

Income from discontinued operations

—

—

—

(0.1)


—

—

—

(0.1)

Change in contingent consideration fair value

—

(0.9)

—

0.9


—

(0.7)

—

0.7

Change in derivative asset & liabilities fair value

—

—

—

0.4


—

—

—

0.2

Unrealized (gain) loss on equity investment

—

—

—

(4.0)


—

—

—

4.3

Share-based compensation

—

(4.9)

(0.2)

5.1


0.1

(3.2)

(0.1)

3.4

Fresh-start inventory-related expense (4)

47.7

—

—

47.7


108.6

—

—

108.6

Recovery of bad debt - customer bankruptcy

—

—

—

—


—

6.4

—

(6.4)

As adjusted:

$     301.1

$     144.2

$       23.3

$   137.2


$     335.1

$     133.3

$       28.8

$     174.0



(1)

Represents legal, financial, and other advisory and consulting expenses, which primarily relate to shareholder matters, integration planning, and regulatory costs associated with the Business Combination.

(2)

Represents costs primarily related to the proposed future separation of the combined generics pharmaceuticals businesses of Mallinckrodt and Endo and Endo's sterile injectables business ("Separation") during the three months ended June 27, 2025. Represents professional fees incurred as the Company explored potential sales of non-core assets to enable further deleveraging post-emergence from the 2023 Bankruptcy Proceedings during the three months ended June 28, 2024.

(3)

As of December 30, 2023, professional fees directly related to the 2023 Bankruptcy Proceedings that were previously reflected as reorganization items, net, are classified within SG&A expenses.

(4)

Represents inventory step-up amortization of $47.7 million for the three months ended June 27, 2025 and inventory step-up amortization of $109.1 million and $0.5 million of fresh-start inventory-related income during the three months ended June 28, 2024.

 

MALLINCKRODT PLC

SEGMENT OPERATING INCOME

(unaudited, in millions)








Three Months Ended June 27, 2025


Specialty
Brands


Specialty
Generics


Total

Net sales

$             264.3


$             220.8


$             485.1

Cost of sales (1)

109.4


139.4


248.8

Selling, general and administrative expenses

59.4


31.3


90.7

Research and development expenses

8.3


5.6


13.9

Restructuring charges, net

(0.2)


—


(0.2)

Segment operating income

$               87.4


$               44.5


131.9

Corporate and unallocated expenses:






Cost of sales (2)





4.5

Selling, general and administrative expenses (2)





59.9

Combination, integration, and other related expenses (3)





22.6

Research and development expenses (2)





9.7

Liabilities management and separation costs (4)





2.2

Operating income





33.0

Interest expense





(32.6)

Interest income





5.9

Loss on divestiture





(0.5)

Other income, net





7.2

Income from continuing operations before income taxes





$               13.0







Depreciation and amortization

$               12.2


$                 9.8





Three Months Ended June 28, 2024


Specialty
Brands


Specialty
Generics


Total

Net sales

$             274.5


$             239.8


$             514.3

Cost of sales (1)

151.9


162.1


314.0

Selling, general and administrative expenses

66.3


19.6


85.9

Research and development expenses

12.1


6.3


18.4

Restructuring charges, net

0.2


—


0.2

Segment operating income

$               44.0


$               51.8


95.8

Corporate and unallocated expenses:






Cost of sales (2)





5.3

Selling, general and administrative expenses (2)





42.0

Research and development expenses (2)





10.8

Liabilities management and separation costs (4)





10.3

Operating Income





27.4

Interest expense





(59.4)

Interest income





6.0

Other expense, net





(3.5)

Loss from continuing operations before income taxes





$             (29.5)







Depreciation and amortization

$               21.5


$               10.5





(1)

Includes $47.7 million and $76.5 million of inventory step-up amortization within the Specialty Brands segment during the three months ended June 27, 2025 and June 28, 2024, respectively. Includes $32.6 million of inventory step-up amortization and $0.5 million of fresh-start inventory-related income within the Specialty Generics segment during the three months ended June 28, 2024.

(2)

Includes certain compensation, information technology, legal, environmental and other costs not charged to our reportable segments.

(3)

Represents legal, financial, and other advisory and consulting expenses, which primarily relate to shareholder matters, integration planning, and regulatory costs associated with the Business Combination.

(4)

Represents costs primarily related to the Separation during the three months ended June 27, 2025.  Represents professional fees incurred as the Company explored potential sales of non-core assets to enable further deleveraging post-emergence from the 2023 Bankruptcy Proceedings during the three months ended June 28, 2024.

 

MALLINCKRODT PLC

SELECT PRODUCT LINE NET SALES AND CONSTANT-CURRENCY GROWTH

(unaudited, in millions)












Three Months Ended








June 27, 2025


June 28, 2024


Percent

change


Currency
impact


Constant-
currency
growth (loss)

Acthar Gel

$             175.1


$             117.7


48.8 %


— %


48.8 %

INOmax

61.9


66.4


(6.8)


(0.1)


(6.7)

Therakos (1)

—


67.2


(100.0)


—


(100.0)

Amitiza

17.2


15.3


12.4


—


12.4

Terlivaz

8.0


5.3


50.9


—


50.9

Other

2.1


2.6


(19.2)


3.5


(22.7)

Specialty Brands

264.3


274.5


(3.7)


—


(3.7)











Opioids

73.2


95.2


(23.1)


—


(23.1)

ADHD

48.7


41.8


16.5


—


16.5

Addiction treatment

26.5


21.0


26.2


(0.1)


26.3

Other

0.6


3.6


(83.3)


—


(83.3)

Generics

149.0


161.6


(7.8)


—


(7.8)

Controlled substances

27.5


26.4


4.2


—


4.2

APAP

39.6


47.3


(16.3)


—


(16.3)

Other

4.7


4.5


4.4


—


4.4

API

71.8


78.2


(8.2)


—


(8.2)

Specialty Generics

220.8


239.8


(7.9)


—


(7.9)

Net sales

$             485.1


$             514.3


(5.7) %


— %


(5.7) %



(1)

On November 29, 2024, the Company completed the sale of the Therakos business. As result, there were three months of Therakos net sales during the three months ended June 28, 2024, which did not recur in the three months ended June 27, 2025. Excluding Therakos, Specialty Brands  and total company net sales were $207.3 million and $447.1 million, respectively, for the three months ended June 28, 2024.

 

MALLINCKRODT PLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions, except per share data)










Six Months Ended


June 27,
2025


Percent of

Net sales


June 28,
2024


Percent of

Net sales

Net sales

$             905.0


100.0 %


$             982.1


100.0 %

Cost of sales

470.3


52.0


623.1


63.4

Gross profit

434.7


48.0


359.0


36.6

Selling, general and administrative expenses

298.1


32.9


264.8


27.0

Combination, integration, and other related expenses

43.1


4.8


—


—

Research and development expenses

44.1


4.9


57.1


5.8

Restructuring charges, net

(2.2)


(0.2)


10.4


1.1

Liabilities management and separation costs

3.6


0.4


17.0


1.7

Operating income

48.0


5.3


9.7


1.0

Interest expense

(65.4)


(7.2)


(118.5)


(12.1)

Interest income

11.7


1.3


12.8


1.3

Loss on divestiture

(6.7)


(0.7)


—


—

Other income, net

1.4


0.2


0.2


—

Loss from continuing operations before income taxes

(11.0)


(1.2)


(95.8)


(9.8)

Income tax expense

14.6


1.6


13.2


1.3

Loss from continuing operations

(25.6)


(2.8)


(109.0)


(11.1)

Income from discontinued operations, net of income taxes

0.3


—


0.3


—

Net loss

$             (25.3)


(2.8) %


$            (108.7)


(11.1) %









Basic and diluted (loss) income per share:








Loss from continuing operations

$             (1.30)




$              (5.53)



Income from discontinued operations

0.02




$               0.02



Net loss

$             (1.28)




$              (5.52)



Weighted-average number of shares outstanding:








Basic

19.7




19.7



Diluted

19.7




19.7



 

MALLINCKRODT PLC

CONSOLIDATED ADJUSTED EBITDA

(unaudited, in millions)












Six Months Ended


June 27, 2025


June 28, 2024


Gross
profit

SG&A

R&D

Adjusted
EBITDA


Gross
profit

SG&A

R&D

Adjusted
EBITDA

Net loss

$     434.7

$     298.1

$       44.1

$  (25.3)


$     359.0

$     264.8

$       57.1

$    (108.7)

Adjustments:










Interest expense, net

—

—

—

53.7


—

—

—

105.7

Income tax expense

—

—

—

14.6


—

—

—

13.2

Depreciation

16.8

(1.1)

(0.3)

18.2


17.4

(0.9)

(0.7)

19.0

Amortization

26.6

—

—

26.6


48.2

—

—

48.2

Combination, integration, and other related
expenses (1)

—

—

—

43.1


—

—

—

—

Restructuring charges, net (2)

—

—

—

(2.2)


—

2.5

—

7.9

Liabilities management and separation costs (3)

—

—

—

3.6


—

—

—

17.0

Losses on divestiture

—

—

—

6.7


—

—

—

—

Reorganization items, net (4)

—

—

—

—


—

(4.7)

—

4.7

Income from discontinued operations

—

—

—

(0.3)


—

—

—

(0.3)

Change in contingent consideration fair value

—

(0.8)

—

0.8


—

(2.1)

—

2.1

Change in derivative asset & liabilities fair value

—

—

—

3.0


—

—

—

4.0

Unrealized loss (gain) on equity investment

—

—

—

2.2


—

—

—

(2.7)

Share-based compensation

0.2

(14.0)

(0.6)

14.8


0.1

(5.0)

(0.2)

5.3

Fresh-start inventory-related expense (5)

80.0

—

—

80.0


209.9

—

—

209.9

Recovery of bad debt - customer bankruptcy

—

—

—

—


—

6.4

—

(6.4)

As adjusted:

$     558.3

$     282.2

$       43.2

$ 239.5


$     634.6

$     261.0

$       56.2

$     318.9



(1)

Represents legal, financial, and other advisory and consulting expenses, which primarily relate to shareholder matters, integration planning, and regulatory costs associated with the Business Combination.

(2)

Includes a net $2.5 million gain on termination of a lease in SG&A during the six months ended June 28, 2024.

(3)

Represents costs primarily related to the Separation during the six months ended June 27, 2025. Represents professional fees incurred as the Company explored potential sales of non-core assets to enable further deleveraging post-emergence from the 2023 Bankruptcy Proceedings during the six months ended June 28, 2024.

(4)

As of December 30, 2023, professional fees directly related to the 2023 bankruptcy proceedings that were previously reflected as reorganization items, net, are classified within SG&A expenses.

(5)

Represents inventory step-up amortization of $80.0 million during the six months ended June 27, 2025 and inventory step-up amortization of $212.4 million and $2.5 million of fresh-start inventory-related income during the six months ended June 28, 2024.

 

MALLINCKRODT PLC

SEGMENT OPERATING INCOME

(unaudited, in millions)








Six Months Ended June 27, 2025


Specialty
Brands


Specialty
Generics


Total

Net sales

$             471.6


$             433.4


$             905.0

Cost of sales (1)

201.8


260.9


462.7

Selling, general and administrative expenses

118.4


58.2


176.6

Research and development expenses

15.6


10.8


26.4

Restructuring charges, net

(2.2)


—


(2.2)

Segment operating income

$             138.0


$             103.5


241.5

Corporate and unallocated expenses:






Cost of sales (2)





7.6

Selling, general and administrative expenses (2)





121.5

Combination, integration, and other related expenses (3)





43.1

Research and development expenses (2)





17.7

Liabilities management and separation costs (4)





3.6

Operating income





48.0

Interest expense





(65.4)

Interest income





11.7

Loss on divestiture





(6.7)

Other expense, net





1.4

Income from continuing operations before income taxes





$             (11.0)








Depreciation and amortization

$               24.3


$               19.6










Six Months Ended June 28, 2024


Specialty
Brands


Specialty
Generics


Total

Net sales

$             531.8


$             450.3


$             982.1

Cost of sales (1)

294.4


321.4


615.8

Selling, general and administrative expenses

125.4


39.0


164.4

Research and development expenses

25.5


12.2


37.7

Restructuring charges, net

10.4


—


10.4

Segment operating income

$               76.1


$               77.7


153.8

Corporate and unallocated expenses:






Cost of sales (2)





7.3

Selling, general and administrative expenses (2)





100.4

Research and development expenses (2)





19.4

Liabilities management and separation costs (4)





17.0

Operating Income





9.7

Interest expense





(118.5)

Interest income





12.8

Other income, net





0.2

Loss from continuing operations before income taxes





$             (95.8)







Depreciation and amortization

$               43.9


$               22.7





(1)

Includes $80.0 million and $148.5 million of inventory step-up amortization within the Specialty Brands segment during the six months ended June 27, 2025 and June 28, 2024, respectively. Includes $63.9 million of inventory step-up amortization and $2.5 million of fresh-start inventory-related income within the Specialty Generics segment during the six months ended June 28, 2024.

(2)

Includes certain compensation, information technology, legal, environmental and other costs not charged to our reportable segments.

(3)

Represents legal, financial, and other advisory and consulting expenses, which primarily relate to shareholder matters, integration planning, and regulatory costs associated with the Business Combination.

(4)

Represents costs primarily related to the Separation during the six months ended June 27, 2025.  Represents professional fees incurred as the Company explored potential sales of non-core assets to enable further deleveraging post-emergence from the 2023 Bankruptcy Proceedings during the six months ended June 28, 2024.

 

MALLINCKRODT PLC

SELECT PRODUCT LINE NET SALES AND CONSTANT-CURRENCY GROWTH

(unaudited, in millions)












Six Months Ended








June 27, 2025


June 28, 2024


Percent

change


Currency
impact


Constant-
currency
growth (loss)

Acthar Gel

$             290.5


$             220.5


31.7 %


— %


31.7 %

INOmax

124.4


136.6


(8.9)


(0.1)


(8.8)

Therakos (1)

—


125.4


(100.0)


—


(100.0)

Amitiza

37.4


34.7


7.8


—


7.8

Terlivaz

15.4


11.3


36.3


—


36.3

Other

3.9


3.3


18.2


2.8


15.4

Specialty Brands

471.6


531.8


(11.3)


—


(11.3)











Opioids

156.9


177.1


(11.4)


—


(11.4)

ADHD

95.9


73.5


30.5


—


30.5

Addiction treatment

45.0


36.4


23.6


(0.2)


23.8

Other

4.5


5.1


(11.8)


—


(11.8)

Generics

302.3


292.1


3.5


—


3.5

Controlled substances

46.6


49.3


(5.5)


—


(5.5)

APAP

73.4


99.0


(25.9)


—


(25.9)

Other

11.1


9.9


12.1


—


12.1

API

131.1


158.2


(17.1)


—


(17.1)

Specialty Generics

433.4


450.3


(3.8)


—


(3.8)

Net sales

$             905.0


$             982.1


(7.9) %


— %


(7.9) %



(1)

On November 29, 2024, the Company completed the sale of the Therakos business. As result, there were six months of Therakos net sales during the six months ended June 28, 2024, which did not recur in the six months ended June 27, 2025. Excluding Therakos, Specialty Brands and total company net sales were $406.4 million and $856.7 million, respectively, for the six months ended June 28, 2024.

 

MALLINCKRODT PLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)






June 27,
2025


December 27,
2024

Assets




Current Assets:




Cash and cash equivalents

$             497.8


$             382.6

Accounts receivable, less allowance for doubtful accounts of $3.3 million and $6.2 million

410.7


395.3

Inventories

594.0


664.9

Prepaid expenses and other current assets

112.7


186.3

Total current assets

1,615.2


1,629.1

Property, plant and equipment, net

414.3


390.6

Intangible assets, net

393.1


419.4

Deferred income taxes

658.3


651.8

Other assets

205.4


211.7

Total Assets

$          3,286.3


$          3,302.6





Liabilities and Shareholders' Equity




Current Liabilities:




Current maturities of long-term debt

$                 3.9


$                 3.9

Accounts payable

78.4


57.8

Accrued payroll and payroll-related costs

76.3


108.1

Accrued interest

13.7


9.2

Acthar Gel-Related Settlement

33.7


21.3

Accrued and other current liabilities

250.6


231.1

Total current liabilities

456.6


431.4

Long-term debt

901.4


909.5

Acthar Gel-Related Settlement

102.7


126.5

Pension and postretirement benefits

27.1


26.5

Environmental liabilities

34.0


34.3

Other income tax liabilities

24.8


25.7

Other liabilities

97.8


102.9

Total Liabilities

1,644.4


1,656.8

Shareholders' Equity:




Ordinary A shares, €1.00 par value, 25,000 authorized; none issued and outstanding

—


—

Ordinary shares, $0.01 par value, 500,000,000 authorized; 19,762,306 and 19,696,335 issued;

 19,736,759 and 19,696,335 outstanding

0.2


0.2

Ordinary shares held in treasury at cost, 25,547 and zero

(1.9)


—

Additional paid-in capital

1,214.4


1,199.8

Accumulated other comprehensive income

13.9


6.1

Retained earnings

415.3


439.7

Total Shareholders' Equity

1,641.9


1,645.8

Total Liabilities and Shareholders' Equity

$          3,286.3


$          3,302.6

 

MALLINCKRODT PLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)






Six Months Ended


June 27, 2025


June 28, 2024

Cash Flows From Operating Activities:




Net loss

$             (25.3)


$            (108.7)

Adjustments to reconcile net cash from operating activities:




Depreciation and amortization

44.8


67.2

Share-based compensation

14.8


5.3

Deferred income taxes

(6.5)


16.3

Non-cash accretion (amortization) expense

3.4


(2.1)

Loss on divestiture

6.7


—

Other non-cash items

13.7


5.8

Changes in assets and liabilities:




Accounts receivable, net

(14.1)


(18.6)

Inventories

62.3


161.6

Accounts payable

20.6


(11.5)

Income taxes

15.9


(5.9)

Acthar Gel-Related Litigation Settlement liability

(21.3)


(21.4)

Other

46.7


(41.0)

Net cash from operating activities

161.7


47.0

Cash Flows From Investing Activities:




Capital expenditures

(40.4)


(50.9)

Payments related to divestiture

(6.2)


—

Proceeds from debt and equity securities

—


22.6

Other

0.7


0.7

Net cash from investing activities

(45.9)


(27.6)

Cash Flows From Financing Activities:




Repayment of debt

(2.0)


(4.4)

Repurchase of shares

(1.9)


—

Other

(0.3)


(0.2)

Net cash from financing activities

(4.2)


(4.6)

Effect of currency rate changes on cash

1.7


(2.2)

Net change in cash, cash equivalents and restricted cash

113.3


12.6

Cash, cash equivalents and restricted cash at beginning of period

445.7


343.4

Cash, cash equivalents and restricted cash at end of period

$             559.0


$             356.0





Cash and cash equivalents at end of period

$             497.8


$             291.1

Restricted cash included in prepaid expenses and other current assets at end of period

19.5


23.6

Restricted cash included in other long-term assets at end of period

41.7


41.3

Cash, cash equivalents and restricted cash at end of period

$             559.0


$             356.0

ENDO, INC. FINANCIAL SCHEDULE

ENDO, INC.

SELECT PRODUCT LINE NET SALES

(unaudited, in thousands)













Successor


Successor



Predecessor


Non-GAAP


Non-GAAP


Three Months
Ended

June 30, 2025


Three Months
Ended

June 30, 2024



Period From
April 1, 2024
through

April 23, 2024


Combined Three
Months Ended

June 30, 2024 (6)


% Change

2025 vs. 2024

Specialty Products:











XIAFLEX®

$            138,598


$             87,054



$             39,588


$              126,642


9.4 %

SUPPRELIN® LA

23,271


14,518



6,078


20,596


13.0 %

Other Specialty (1)

14,300


9,339



5,902


15,241


(6.2) %

Total Specialty Products

$            176,169


$            110,911



$             51,568


$              162,479


8.4 %

Established Products:











PERCOCET®

$             20,959


$             13,910



$               9,348


$               23,258


(9.9) %

TESTOPEL®

9,339


8,382



2,734


11,116


(16.0) %

EDEX®

11,065


5,749



3,932


9,681


14.3 %

Other Established

10,403


7,199



11,336


18,535


(43.9) %

Total Established Products (2)

$              51,766


$              35,240



$             27,350


$                62,590


(17.3) %

Total Branded Pharmaceuticals

$            227,935


$            146,151



$             78,918


$              225,069


1.3 %

Sterile Injectables:











ADRENALIN®

$             21,266


$             14,642



$             11,233


$               25,875


(17.8) %

VASOSTRICT®

9,593


7,926



7,356


15,282


(37.2) %

APLISOL®

18,581


9,274



4,426


13,700


35.6 %

Other Sterile Injectables (3)

37,972


24,632



11,282


35,914


5.7 %

Total Sterile Injectables (2)

$              87,412


$             56,474



$             34,297


$                90,771


(3.7) %

Total Generic Pharmaceuticals (4)

$            118,986


$             69,722



$             40,360


$              110,082


8.1 %

Total International Pharmaceuticals (5)

$              13,442


$             11,816



$               8,892


$                20,708


(35.1) %

Total Revenues, Net (7)

$            447,775


$            284,163



$            162,467


$              446,630


0.3 %



(1)

Products included within Other Specialty include, but are not limited to, AVEED®.

(2)

Individual products presented above represent the top three performing products for the periods presented and/or any product having revenues in excess of $25 million during any period presented for 2025 or 2024.

(3)

No individual product within Other Sterile Injectables has exceeded 5% of consolidated total revenues for the periods presented.

(4)

The Generic Pharmaceuticals segment is comprised of a portfolio of products that are generic versions of branded products, are distributed primarily through the same wholesalers, generally have limited or no intellectual property protection and are sold within the U.S. During the Successor three months ended June 30, 2025, the Successor three months ended June 30, 2024 and the Predecessor period April 1, 2024 through April 23, 2024, Lidocaine patch 5% made up 10%, 9% and 7%, respectively, of consolidated revenues. No other individual product within the segment has exceeded 5% of consolidated total revenues for the periods presented.

(5)

No individual product within the International Pharmaceuticals segment accounted for more than 5% of consolidated total revenues for any of the periods presented.

(6)

As required by GAAP, due to the application of Fresh Start Accounting, results for the period must be presented separately for the predecessor period from April 1, 2024 through April 23, 2024 (the "Predecessor" period) and the successor three months ended June 30, 2024 (the "Successor" period), where applicable. However, to facilitate comparison of our operating results against the relevant prior periods the Company has combined the results of the Predecessor and Successor periods as non-GAAP measures ("combined" results).

(7)

On June 17, 2025, Endo completed the sale of International Pharmaceuticals business. Excluding International Pharmaceuticals, total revenues, net were $434.3 million and $272.3 million during the three months ended June 30, 2025 and 2024 (Successor), respectively, and $153.6 million during period from April 1, 2024 through April 23, 2024 (Predecessor). For the combined three months June 30, 2024, total revenues net excluding the International Pharmaceuticals was $425.9 million.

 

ENDO, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited, in thousands, except per share data)









Successor



Predecessor


Three Months
Ended

June 30, 2025


Three Months
Ended

June 30, 2024



Period From
April 1, 2024
through

April 23, 2024

TOTAL REVENUES, NET

$            447,775


$            284,163



$            162,467

COSTS AND EXPENSES:







Cost of revenues

289,464


333,695



60,539

Selling, general and administrative

158,767


95,992



28,323

Research and development

25,991


22,448



6,120

Acquired in-process research and development

100


—



—

Litigation-related and other contingencies, net

687


—



200

Asset impairment charges

1,000


—



1,799

Acquisition-related and integration items, net

385


(130)



(817)

Interest expense (income), net

53,572


44,669



(2)

Reorganization items, net

—


—



(6,328,145)

Other (income) expense, net

(15,907)


246



(493)

(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX

$            (66,284)


$          (212,757)



$         6,394,943

INCOME TAX (BENEFIT) EXPENSE

(6,674)


(63,981)



50,629

(LOSS) INCOME FROM CONTINUING OPERATIONS

$            (59,610)


$          (148,776)



$         6,344,314

DISCONTINUED OPERATIONS, NET OF TAX

—


—



183,234

NET (LOSS) INCOME

$            (59,610)


$          (148,776)



$         6,527,548

NET (LOSS) INCOME PER SHARE—BASIC:







Continuing operations

$                (0.78)


$                (1.95)



$                26.97

Discontinued operations

—


$                     —



$                  0.78

Basic

$                (0.78)


$                (1.95)



27.75

NET (LOSS) INCOME PER SHARE—DILUTED:







Continuing operations

$                 (0.78)


$                (1.95)



$               26.97

Discontinued operations

—


$                     —



0.78

Diluted

$                (0.78)


$                (1.95)



$               27.75

WEIGHTED AVERAGE SHARES:







Basic

76,289


76,156



235,220

Diluted

76,289


76,156



235,220

 

ENDO, INC.

SELECT PRODUCT LINE NET SALES

(unaudited, in thousands)













Successor


Successor



Predecessor


Non-GAAP


Non-GAAP


Six Months
Ended

June 30, 2025


Six Months
Ended

June 30, 2024



Period From
January 1, 2024
through

April 23, 2024


Combined Six
Months Ended
June 30, 2024 (6)


% Change

2025 vs. 2024

Specialty Products:











XIAFLEX®

$            259,965


$             87,054



$            152,638


$              239,692


8.5 %

SUPPRELIN® LA

50,651


14,518



26,213


40,731


24.4 %

Other Specialty (1)

25,882


9,339



21,120


30,459


(15.0) %

Total Specialty Products

$            336,498


$            110,911



$            199,971


$              310,882


8.2 %

Established Products:











PERCOCET®

$             42,945


$             13,910



$             33,892


$                47,802


(10.2) %

TESTOPEL®

19,629


8,382



13,225


21,607


(9.2) %

EDEX®

20,609


5,749



13,228


18,977


8.6 %

Other Established

17,745


7,199



19,398


26,597


(33.3) %

Total Established Products (2)

$            100,928


$             35,240



$             79,743


$              114,983


(12.2) %

Total Branded Pharmaceuticals

$            437,426


$            146,151



$           279,714


$              425,865


2.7 %

Sterile Injectables:











ADRENALIN®

$             35,317


$             14,642



$             38,601


$               53,243


(33.7) %

VASOSTRICT®

17,879


7,926



34,309


42,235


(57.7) %

APLISOL®

33,482


9,274



16,813


26,087


28.3 %

Other Sterile Injectables (3)

72,005


24,632



42,808


67,440


6.8 %

Total Sterile Injectables (2)

$            158,683


$             56,474



$            132,531


$              189,005


(16.0) %

Total Generic Pharmaceuticals (4)

$            218,070


$             69,722



$            143,677


$              213,399


2.2 %

Total International Pharmaceuticals (5)

$              26,429


$             11,816



$              26,052


$                37,868


(30.2) %

Total Revenues, Net (7)

$            840,608


$           284,163



$            581,974


$              866,137


(2.9) %



(1)

Products included within Other Specialty include, but are not limited to, AVEED®.

(2)

Individual products presented above represent the top three performing products for the periods presented and/or any product having revenues in excess of $25 million during any period presented for 2025 or 2024.

(3)

No individual product within Other Sterile Injectables has exceeded 5% of consolidated total revenues for the periods presented.

(4)

The Generic Pharmaceuticals segment is comprised of a portfolio of products that are generic versions of branded products, are distributed primarily through the same wholesalers, generally have limited or no intellectual property protection and are sold within the U.S. During the Successor six months ended June 30, 2025, the Successor six months ended June 2024 and the Predecessor period January 1, 2024 through April 23, 2024, Lidocaine patch 5% made up 10%, 9% and 7%, respectively, of consolidated revenues. No other individual product within the segment has exceeded 5% of consolidated total revenues for the periods presented. No other individual product within the segment has exceeded 5% of consolidated total revenues for the periods presented.

(5)

No individual product within the International Pharmaceuticals segment accounted for more than 5% of consolidated total revenues for any of the periods presented.

(6)

As required by GAAP, due to the application of Fresh Start Accounting, results for the period must be presented separately for the predecessor period from January 1, 2024 through April 23, 2024 (the "Predecessor" period) and the successor six months ended June 30, 2024 (the "Successor" period), where applicable. However, to facilitate comparison of our operating results against the relevant prior periods the Company has combined the results of the Predecessor and Successor periods as non-GAAP measures ("combined" results).

(7)

On June 17, 2025, Endo completed the sale of International Pharmaceuticals business. Excluding International Pharmaceuticals, total revenues, net were $814.2 million and $272.3 million during the six months ended June 30, 2025 and 2024 (Successor), respectively, and $555.9 million during period from January 1, 2024 through April 23, 2024 (Predecessor). For the combined six months June 30, 2024, total revenues net excluding the International Pharmaceuticals was $828.3 million.

 

ENDO, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited, in thousands, except per share data)









Successor



Predecessor


Six Months
Ended

June 30, 2025


Six Months
Ended

June 30, 2024



Period From
January 1, 2024
through

April 23, 2024

TOTAL REVENUES, NET

$            840,608


$            284,163



$            581,974

COSTS AND EXPENSES:







Cost of revenues

584,867


333,695



259,552

Selling, general and administrative

307,808


95,992



158,391

Research and development

57,625


22,448



32,022

Acquired in-process research and development

2,636


—



750

Litigation-related and other contingencies, net

1,007


—



200

Asset impairment charges

1,000


—



2,103

Acquisition-related and integration items, net

1,400


(130)



(196)

Interest expense (income), net

106,242


44,669



(2)

Reorganization items, net

—


—



(6,125,099)

Other (income) expense, net

(14,879)


246



5,262

(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX

$          (207,098)


$          (212,757)



$         6,248,991

INCOME TAX (BENEFIT) EXPENSE

(18,858)


(63,981)



58,511

(LOSS) INCOME FROM CONTINUING OPERATIONS

$          (188,240)


$          (148,776)



$         6,190,480

DISCONTINUED OPERATIONS, NET OF TAX

$                     —


$                     —



$            182,838

NET (LOSS) INCOME

$          (188,240)


$          (148,776)



$         6,373,318

NET (LOSS) INCOME PER SHARE—BASIC:







Continuing operations

$                (2.47)


$                (1.95)



$               26.32

Discontinued operations

—


—



0.78

Basic

$                (2.47)


$                (1.95)



$               27.10

NET (LOSS) INCOME PER SHARE—DILUTED:







Continuing operations

$                (2.47)


$                (1.95)



$               26.32

Discontinued operations

—


—



0.78

Diluted

$                (2.47)


$                (1.95)



$               27.10

WEIGHTED AVERAGE SHARES:







Basic

76,250


76,156



235,220

Diluted

76,250


76,156



235,220

 

ENDO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)






June 30,
2025


December 31,
2024

ASSETS




CURRENT ASSETS:




Cash and cash equivalents

$            438,999


$            387,247

Restricted cash and cash equivalents

93,105


89,183

Accounts receivable

453,130


415,924

Inventories, net

439,689


527,736

Other current assets

58,776


55,797

Total current assets

$         1,483,699


$         1,475,887

TOTAL NON-CURRENT ASSETS

2,641,745


2,877,014

TOTAL ASSETS

$         4,125,444


$         4,352,901

LIABILITIES AND STOCKHOLDERS' EQUITY




CURRENT LIABILITIES:




Accounts payable and accrued expenses, including legal settlement accruals

$            453,169


$            476,827

Other current liabilities

30,771


38,166

Total current liabilities

$            483,940


$            514,993

LONG-TERM DEBT, LESS CURRENT PORTION, NET

2,418,820


2,422,721

OTHER LIABILITIES

151,598


162,849

SHAREHOLDERS' EQUITY

1,071,086


1,252,338

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$         4,125,444


$         4,352,901

 

ENDO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands, except per share data)









Successor



Predecessor


Six Months
Ended

June 30, 2025


Six Months
Ended

June 30, 2024



Period From
January 1, 2024
through

April 23, 2024

OPERATING ACTIVITIES:







Net (loss) income

$          (188,240)


$          (148,776)



$         6,373,318

Adjustments to reconcile Net loss to Net cash provided by operating activities

197,595


220,615



(7,117,959)

Net cash provided by (used in) operating activities

$               9,355


$             71,839



$          (744,641)

INVESTING ACTIVITIES:







Capital expenditures, excluding capitalized interest

(24,396)


(8,921)



(19,751)

Acquisitions, including in-process research and development, net of cash and restricted
cash acquired

(2,536)


—



(750)

Proceeds from sale of business and other assets

81,982


1,631



2,188

Proceeds from the U.S. Government Agreement

785


1,161



7,728

Net cash provided by (used in) investing activities

$             55,835


$              (6,129)



$            (10,585)

FINANCING ACTIVITIES:







Payments on borrowings, including certain adequate protection payments, net (a)

(7,500)


—



(2,786,331)

Other

(2,698)


(2,767)



2,909,939

Net cash (used in) provided by financing activities

$            (10,198)


$              (2,767)



$            123,608

Effect of foreign exchange rate

682


439



(1,998)

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, RESTRICTED CASH
AND RESTRICTED CASH EQUIVALENTS

$             55,674


$             63,382



$          (633,616)

CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH
EQUIVALENTS, BEGINNING OF PERIOD

476,430


397,005



1,030,621

CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH
EQUIVALENTS, END OF PERIOD

$            532,104


$            460,387



$            397,005



(a)

Beginning during the third-quarter of 2022, Endo International plc (EIP) became obligated to make certain adequate protection payments as a result of its previously disclosed Chapter 11 proceedings.

SUPPLEMENTAL FINANCIAL INFORMATION

The tables below provide reconciliations of certain of the non-GAAP financial measures included in this release to their most directly comparable GAAP metrics. Refer to the "Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures" section below for additional details regarding the adjustments to the non-GAAP financial measures detailed throughout this Supplemental Financial Information section.

ENDO, INC.

CONSOLIDATED ADJUSTED EBITDA

(unaudited, in thousands)











Successor



Predecessor


Non-GAAP

Combined


Three Months
Ended

June 30, 2025


Three Months
Ended

June 30, 2024



Period From
April 1, 2024
through

April 23, 2024


Three Months
Ended

June 30, 2024

Net Loss (GAAP)

$            (59,610)


$          (148,776)



$         6,527,548


$         6,378,772

Income tax (benefit) expense, net

(6,674)


(63,981)



50,630


(13,351)

Interest expense, net

53,572


44,669



(3)


44,666

Depreciation and amortization (1)

75,133


60,352



18,030


78,382

EBITDA (non-GAAP)

$             62,421


$          (107,736)



$         6,596,205


$         6,488,469

Asset impairment charges (2)

1,000


—



1,799


1,799

Share-based compensation (1)

1,735


—



—


—

Acquisition & Divestitures (3)

94,294


191,857



(817)


191,040

Restructuring or similar transactions (4)

5,933


5,324



—


5,324

Reorganization items, net (5)

—


—



(6,328,145)


(6,328,145)

Other (6)

(15,616)


246



282


528

Discontinued Operations (8)

—


—



(183,234)


(183,234)

Adjusted EBITDA (non-GAAP)

$            149,767


$             89,691



$             86,090


$            175,781

 

ENDO, INC.

CONSOLIDATED ADJUSTED NET INCOME

(unaudited, in thousands)











Successor



Predecessor (a)


Non-GAAP

Combined


Three Months
Ended

June 30, 2025


Three Months
Ended

June 30, 2024



Period From
April 1, 2024
through

April 23, 2024


Three Months
Ended

June 30, 2024

Net Loss (GAAP)

$            (59,610)


$          (148,776)



$         6,527,548


$         6,378,772

Non-GAAP adjustments:









Asset impairment charges (2)

1,000


—



1,799


1,799

Acquisition & Divestitures (3)

156,138


240,938



14,264


255,202

Restructuring or similar transactions (4)

5,933


5,324



1


5,325

Reorganization items, net (5)

—


—



(6,328,145)


(6,328,145)

Other (6)

(15,616)


246



32


278

Tax adjustments (7)

(23,926)


(69,610)



44,307


(25,303)

Discontinued Operations (8)

—


—



(183,234)


(183,234)

Adjusted Net Income (Loss) (non-GAAP)

$             63,919


$             28,122



$             76,572


$            104,694

Reconciliation of Select Other Adjusted Income Statement Data (non-GAAP)

The following tables provide detailed reconciliations of select other income statement data for Endo, Inc. between the GAAP and non-GAAP measure (in thousands):



Three Months Ended June 30, 2025 (Successor)



Cost of
revenues


Gross

profit (a)


Gross
margin (a)


Total
operating
expenses (b)


Reorganization
items, net


Other
(income)
expense, net


Income tax
(benefit)
expense

Reported (GAAP)


$       289,464


$       158,311


35.4 %


$       186,930


$                    —


$       (15,907)


$         (6,674)

Items impacting comparability:















Asset Impairment charges (2)


—


—




(1,000)


—


—


—

Acquisition & Divestitures (3)


(123,678)


123,678




(32,460)


—


—


—

Restructuring or similar
transactions (4)


(768)


768




(5,165)


—


—


—

Other (6)


—


—




(291)


—


15,907


—

Tax adjustments (7)


—


—




—


—


—


23,926

Non-GAAP


$       165,018


$       282,757


63.1 %


$       148,014


$                    —


$                —


$         17,252




Three Months Ended June 30, 2024 (Successor)



Cost of
revenues


Gross

profit (a)


Gross
margin (a)


Total
operating
expenses (b)


Reorganization
items, net


Other
expense, net


Income tax
(benefit)
expense

Reported (GAAP)


$       333,695


$       (49,532)


(17.4) %


$       118,310


$                     —


$              246


$       (63,981)

Items impacting comparability:















Acquisition & Divestitures (3)


(241,068)


241,068




130


—


—


—

Restructuring or similar
transactions (4)


(7)


7




(5,317)


—


—


—

Other (6)


—


—




—


—


(246)


—

Tax adjustments (7)


—


—




—


—


—


69,610

Non-GAAP


$         92,620


$       191,543


67.4 %


$       113,123


$                     —


$                —


$           5,629




Period From April 1, 2024 through April 23, 2024 (Predecessor)



Cost of
revenues


Gross

profit (a)


Gross
margin (a)


Total
operating
expenses (b)


Reorganization
items, net


Other
(income)
expense, net


Income tax
expense

Reported (GAAP)


$         60,539


$       101,928


62.7 %


$         35,625


$       (6,328,145)


$            (493)


$         50,629

Items impacting comparability:















Asset impairment charges (2)


—


—




(1,799)


—


—


—

Acquisition & Divestitures (3)


(15,081)


15,081




818


—


—


—

Restructuring or similar
transactions (4)


(1)


1




—


—


—


—

Reorganization items, net (5)


—


—




—


6,328,145


—


—

Other (6)


—


—




(778)


—


746


—

Tax adjustments (7)


—


—




—


—


—


(44,309)

Non-GAAP


$         45,457


$       117,010


72.0 %


$         33,866


$                     —


$              253


$           6,320



(a)

Gross profit is calculated as total revenues less cost of revenues. Gross margin is calculated as gross profit divided by total revenues. Adjusted gross profit is calculated as total revenues less adjusted cost of sales. Adjusted gross margin is calculated as adjusted gross profit divided by total revenues.

(b)

Total operating expenses is calculated as the total of: (i) Selling, general and administrative; (ii) Research and development; (iii) Acquired in-process research and development; (iv) Litigation-related and other contingencies, net; (v) Asset impairment charges; and (vi) Acquisition related and integration items, net.

Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures

Notes to certain line items included in the reconciliations of the GAAP financial measures to the non-GAAP financial measures are as follows:

(1)

Depreciation and amortization and Share-based compensation per the Adjusted EBITDA reconciliations do not include amounts reflected in other lines of the reconciliations, including amounts related to restructuring or other transactions.



(2)

To exclude long-lived and other intangible assets impairment charges for the three months ended June 30, 2025 and the Predecessor period April 1, 2024 through April 23, 2024.



(3)

Adjustments for acquisitions and divestitures included the following (in thousands):




Successor



Predecessor


Three Months Ended

June 30, 2025


Three Months Ended

June 30, 2024



April 1, 2024

through

April 23, 2024


Cost of
revenues


Operating
expenses


Cost of
revenues


Operating
expenses



Cost of
revenues


Operating
expenses

Amortization of inventory step-up

$             61,834


$                     —


$            191,987


$                     —



$                     —


$                     —

Fair value of contingent
consideration

—


385


—


(130)



—


(818)

Amortization of intangible assets (a)

61,844


—


49,081


—



15,081


—

Integration (b)

—


32,075


—





—


—

Total

$            123,678


$             32,460


$            241,068


$                 (130)



$             15,081


$                 (818)





(a)

For the purposes of calculating Adjusted EBITDA (non-GAAP), amortization of intangible assets is excluded from the adjustments for acquisitions and divestitures as it is included as an adjustment to arrive at EBITDA (non-GAAP). Amortization of intangible assets is an adjustment included in the acquisitions and divestitures line item for the purposes calculating Adjusted Net Income (non-GAAP).


(b)

The Company has incurred certain transaction costs during the Successor three months ended June 30, 2025 in connection with the execution of the combination of Mallinckrodt and Endo.




(4)


Adjustments for Restructuring or similar transactions included the following (in thousands):





Successor



Predecessor


Three Months Ended

June 30, 2025


Three Months Ended

June 30, 2024



April 1, 2024

through

April 23, 2024


Cost of
revenues


Operating
expenses


Cost of
revenues


Operating
expenses



Cost of
revenues

Continuity and separation benefits

$                  768


$               5,165


$                     —


$                     —



$                     —

Other

—


—


7


5,317



1

Total

$                  768


$               5,165


$                      7


$               5,317



$                      1



(5)

Amounts relate to the net expense or income recognized during Endo International plc's bankruptcy proceedings required to be presented as Reorganization items, net under Accounting Standards Codification Topic 852, Reorganizations.

(6)

The "Other" row included in the above reconciliation of Net (Loss) Income (GAAP) to Adjusted Net Income (non-GAAP) includes the following adjustments:




Successor



Predecessor


Three Months Ended

June 30, 2025


Three Months Ended

June 30, 2024



April 1, 2024

through

April 23, 2024


Operating
expenses


Other
(Income)/Expense


Other
(Income)/Expense



Operating
expenses


Other
(Income)/Expense


Discontinued
Operations

Certain Legal Costs

$                  —


$                  —


$                  —



$                578


$                  —


$                  —

Legal Settlements

687


—


—



200


—


—

Foreign currency impact related to the re-
measurement of intercompany debt
instruments

—


2,281


246



—


(746)


—

(Gain)/Loss on Asset/Business Sale

—


(20,464)


—



—


—


—

Other

(396)


2,276


—



—


—


137,578

Total

$                291


$          (15,907)


$                246



$                778


$              (746)


$         137,578



(7)

Adjusted income taxes are calculated by tax effecting adjusted pre-tax income and permanent book-tax differences at the applicable effective tax rate that will be determined by reference to statutory tax rates in the relevant jurisdictions in which Endo, Inc. operates or EIP operated. Adjusted income taxes include current and deferred income tax expense commensurate with the non-GAAP measure of profitability.

(8)

To exclude from the results of the Predecessor reported as discontinued operations. No portion of Endo, Inc.'s business is currently reported as a discontinued operation.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/mallinckrodt-plc-reports-financial-results-for-second-quarter-2025-and-provides-guidance-302522791.html

SOURCE Mallinckrodt plc

FAQ

What were Mallinckrodt's (MNK) Q2 2025 earnings results?

Mallinckrodt reported net sales of $485.1M (down 5.7% YoY), net income of $2.4M, and adjusted EBITDA of $137.2M.

How much did Acthar Gel sales grow in Q2 2025?

Acthar Gel sales increased by 48.8% to $175.1M, marking its highest growth quarter in over a decade.

What is Mallinckrodt's revenue guidance for 2025?

The combined company expects total net sales of $3.57B to $3.62B and adjusted EBITDA of $1.10B to $1.13B for 2025.

When is the Par Health spin-off expected to complete?

The Par Health spin-off is planned for the fourth quarter of 2025, subject to Board approval and other conditions.

What are Par Health's projected financials for 2025?

Par Health is projected to achieve net sales of $1.72B to $1.75B and adjusted EBITDA of $450M to $470M in 2025.

How did XIAFLEX perform in Q2 2025?

XIAFLEX revenues grew 9.4% to $138.6M compared to $126.6M in Q2 2024.
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