Global specialty pharmaceutical company Mallinckrodt PLC (NYSE:MNK) reported on Tuesday higher earnings and revenue for the third quarter while raising its earnings guidance for the full year, giving its shares a modest boost during the trading session.
The company said revenue for the quarter hit $640 million, topping the consensus of $635.89 million. EPS reached $2.10, above the year-ago level of $1.82 and the consensus of $1.80.
Adjusted net income over the first nine months was $439.6 million, compared with $418 million. Adjusted diluted earnings per share were $5.16 compared with $4.19.
The company raised its full-year EPS guidance to $7.00 to $7.20, compared with the previous $6.50 to $6.90.
"Mallinckrodt performed well in the third quarter driven by strong customer demand for our hospital products and effective expense management," said Mark Trudeau, the president and CEO of Mallinckrodt.
Shares of the company jumped as high as 10.45% to a session peak of $30 before trimming its gains.
The company said its third-quarter debt was reduced by $170.6 million and that total debt reduction was at $630.7 million since the end of the first quarter.
Trudeau said "tight expense control also helped us support increased R&D investments in our innovative pipeline" and the performance of the company enabled them to raise the guidance on EPS for the year.
"We continue to be pleased with the performance trajectory of H.P. Acthar Gel and we also look forward to a number of important clinical data and regulatory updates across the portfolio in coming quarters. Finally, we continue to make strong progress against our objective of reducing debt," he said.
Acthar Gel is a purified preparation of adrenocorticotropic hormone (ACTH) designed to provide extended release of the ACTH following injection. ACTH stimulates the adrenal cortex gland to secrete cortisol, corticosterone, and aldosterone andi s used to treat multiple sclerosis in adults and systemic lupus in kidneys.
Mallinckrodt is a global business that develops, manufactures, markets and distributes specialty pharmaceutical products and therapies.
The company is based in Staines-Upon-Thames, United Kingdom.
Reporting by Rene Pastor, contactable on [email protected]