Mallinckrodt PLC (NYSE:MNK) CEO Accused Of “FRAUD” by Citron Research – the stock is tanking again – see their report below
Mallinckrodt Stock Target Price – $20
- As insurance companies have clamped down on reimbursement, tax-inverted Mallinckrodt has dug deeper into the pockets of taxpayer-funded Medicare to peddle its medically unproven Acthar
- The CEO of MNK has committed FRAUD by lying to the investing public about the company’s dependence on the Medicare system.
- Acthar is now THE MOST EXPENSIVE drug reimbursed by Medicare.
This will soon end and $MNK will trade at $20 a share.
Mallinckrodt CEO Mark Trudeau has been caught red handed committing securities fraud — exposed by none other than the newly released Medicare drug-spending dashboard.
This long-promised, just released public information database demonstrates that HP Acthar Gel is The Single Most Expensive Drug per Treatment as reimbursed by Medicare / Medicaid.
October 2015 was the tipping point for pharmaceutical pricing scrutiny in the United States. As Valeant collapsed following exposure of their orchestrating the “Phildor scheme”, the media and Congress both went head-hunting for abusers of the healthcare reimbursement system.
In response to public outcry and pressure to search for systemic reimbursement abusers, by December 2015 Medicare had launched an online drug spending dashboard. Results have just been just made public this week and it exposes the dirty secrets of Mallinckrodt.
Failure to Disclose
On an October 5, 2015 conference call, while the shit was hitting the fan in the pharmaceutical business, CEO Mark Trudeau was asked about the company’s reliance on Medicare for revenues for Acthar:
Question – Jason M. Gerberry:
And then just as a quick follow-up, can you just remind us? What is your Acthar exposure to Medicare? Thanks.
Answer – Mark C. Trudeau:
So with regards to your question on Medicare exposure to Acthar, a couple of things. One, if we look at our overall business, the combined proportion of our business that goes through Medicare and Medicaid combined it’s about a quarter of our business, roughly. Acthar is maybe a little bit higher than that.
As we now learn, the concentration for Acthar paid by Medicare has ballooned to 61% as Trudeau lied to Wall Street.
At the time, Trudeau must have calculated the investing public would never know the damming truth, but only two months later in response to public outrage, this information was on its way to being revealed to the public.
For the year 2015, Medicare and Medicaid Spending is not merely “a little bit” higher than 25%. In fact, it is over 61% of Acthar sales.
Let’s not forget that Acthar continues to represent a massively disproportionate chunk of Mallinckrodt’s bottom line, a number that Trudeau always is happy to dance around, rather than disclose the true concentration risk it took on when it levered up massively to acquire this never-proven drug.
Article by Citron Research
See the full report below.