By Alison Knopf
As in the last time Mallinckrodt filed for bankruptcy in 2020, the Dublin-based pharmaceutical company will continue to serve opioid use disorder (OUD) provider customers, including opioid treatment programs (OTPs), AT Forum has learned.
The second bankruptcy, a “restructuring” like the first, was filed August 25.
“Earlier this morning, we announced that Mallinckrodt has entered into a Restructuring Support Agreement (RSA) that requires a pre-packaged chapter 11 filing to enable us to significantly reduce debt, resolve obligations to the Opioid Trust and enhance our financial flexibility,” the company announced August 25. “The RSA enjoys broad support from a substantial majority of our creditors and the Opioid Trust.”
The company added that “ the Chapter 11 case will be completed in Q4 2023, so this process should be of much shorter duration than our last restructuring.”
So patients and providers should be reassured that there will be no impact on their treatment. And the stress was on continued service ot manufacturing products, including methadone. “This step is not expected to impact day-to-day operations or our ability to continue to manufacture high-quality products to meet our agreements with customers, partners and patients.”
Shortly after its first Chapter 11 restructuring was announced in the fall of 2020, Mallinckrodt, which for decades had support AT Forum, had to withdraw its support. For that announcement, go to https://atforum.com/2020/10/to-mallinckrodt-thank-you-from-at-forum/
After that, Hikma supported AT Forum for two years, but also, under budget pressures, had to withraw its support (https://atforum.com/2023/01/thank-you-hikma/). AT Forum has had no funding as far as this reporter knows since January, 2023, but has applied for grants and funding. Hikma is also an important manufacturer of methadone.
OTPs rely on methadone. No other treatment provider is allowed to prescribe or dispense methadone for the treatment of OUD, and patients are dependent on it, especially in the fentanyl era, during which stronger replacement opioids are needed to keep patients from experiencing withdrawal, craving, and other symptoms which could lead them to deadly street fentanyl. Healthy maintenance is also required for a healthy lifestyle and return to being a productive member of society.
AT Forum values and appreciates all contributors to solutions to the opioid epidemic.
For more information, go to https://mnkrestructuring.com/.