@The Yankee, You post brings back memories of the time when the...

@The Yankee,

You post brings back memories of the time when the fact that someone answered the phone at a certain heart trial recruitment center was presented as conclusive proof that Teva had not terminated, and would not terminate, its funding of MSB's heart trials.


In the case of Mallincrodt responding to the public opinion of a certain high-profile investor, what else do you think Mallincrodt's spokespeople could possibly say?

There sure as heck aren't going to come out and say, "Actually folk, we hate to admit it, but Mr Chanos has got a point in questioning our business model."?

To counter opinions that are not in their employer's interests is what Mallinckrodt management are paid to do. They'd be professionally negligent if they didn't make an attempt to discredit Chanos.

What is noteworthy, however, is that Mallinckrodt did nothing to refute - or even mention, let alone address - Chanos's overarching concern about the company having a massive $8.0bn of debt, supported by a mere $300m in operating earnings.


And the market doesn't seem to be paying much heed to the company line, given Mallincrodt's share price barely budged off its record low, closing last week at a price 12% lower than it was just a few days ago when Mallincrodt reported its March quarter result (the result which you proudly declared had "beaten expectations").