Latest news with #Mallinckrodt
Yahoo
29-04-2025
- Business
- Yahoo
DuPont Announces Additional Leaders and Company Name for the Intended Spin-Off of the Electronics Business
Matthew Harbaugh named Chief Financial Officer; management team fully staffed ahead of spin-off Change to future Board Chair announced WILMINGTON, Del., April 29, 2025 /PRNewswire/ -- DuPont (NYSE:DD) today announced Qnity Electronics, Inc. ("Qnity") as the name of the planned independent Electronics public company that will be created through the intended spin-off of its Electronics business*. As a pure-play electronics materials company, Qnity will be one of the largest and broadest solutions providers to the semiconductor and electronics industries enabling advanced computing, smart technologies and connectivity. "Inspired by 'Q', the symbol for electrical charge, and 'unity', the name reflects the collaborative way we work with customers. We harness our collective expertise, bringing energy, curiosity and quality to make tomorrow's technologies possible," said Jon Kemp, CEO-Elect of the intended Electronics spin-off. DuPont also announced that Matthew Harbaugh will join the company effective May 1, 2025, and will be the Chief Financial Officer of Qnity. Mr. Harbaugh brings more than 25 years of experience in finance, strategy, and operations management. He most recently served as CFO of Vantive, the planned spin-off from Baxter prior to its sale to Carlyle. He previously served as CFO at NuVasive and Mallinckrodt, both publicly traded companies. During his tenure at Mallinckrodt, a company that he helped spin-off from Covidien, he oversaw the company's accounting, treasury and tax functions, as well as information technology, procurement and facilities. Early in his career, Mr. Harbaugh held various finance roles with increasing responsibility first at Monsanto and then Covidien. "It's a pleasure to welcome Matt to the Qnity leadership team as our Chief Financial Officer," said Kemp, "We've assembled a tenured management team with deep industry experience, and Matt's impressive track record and experience with multiple spin-offs will bring a valuable perspective as we prepare to launch and deliver strong business results." "It is a privilege to have been selected as Qnity's future CFO at a time when the electronics industry is poised for remarkable growth and innovation," said Harbaugh. "I look forward to working alongside this highly capable team to capture the value creation opportunities for the new company and enhance shareholder returns." Additional senior leaders of the planned Electronics company include: Chuck Xu, currently Vice President in DuPont's ElectronicsCo division, will continue to lead Interconnect Solutions. Sang Ho Kang, currently Vice President in DuPont's ElectronicsCo division, will continue to lead Semiconductor Technologies. Peter Hennessey, as General Counsel; Mr. Hennessey is currently Associate General Counsel and DuPont Corporate Secretary. Kathleen Fortebuono, as Chief Human Resources Officer; Ms. Fortebuono is currently DuPont Vice President, Global Rewards, and HR M&A. Additionally, DuPont announced that Michael Stubblefield has decided not to assume the role of chairperson of the future Electronics Board of Directors. This decision will allow Mr. Stubblefield to focus on fully supporting Avantor's transition to a new CEO. A new board member for the future independent Electronics public company and the future chairperson will be named at a later date. About DuPont DuPont (NYSE: DD) is a global innovation leader with technology-based materials and solutions that help transform industries and everyday life. Our employees apply diverse science and expertise to help customers advance their best ideas and deliver essential innovations in key markets including electronics, transportation, construction, water, healthcare and worker safety. More information about the company, its businesses and solutions can be found at Investors can access information included on the Investor Relations section of the website at DuPont™, the DuPont Oval Logo, and all trademarks and service marks denoted with ™, SM or ® are owned by affiliates of DuPont de Nemours, Inc. unless otherwise noted. *On January 15, 2025, DuPont announced it is targeting November 1, 2025, for the completion of the intended separation of the Electronics business (the "Intended Electronics Separation"). The Intended Electronics Separation will not require a shareholder vote and is subject to satisfaction of customary conditions, including final approval by DuPont's Board of Directors, receipt of tax opinion from counsel, the completion and effectiveness of the Form 10 registration statement filed with the U.S. Securities and Exchange Commission, applicable regulatory approvals and satisfactory completion of financing. Cautionary Statement about Forward-Looking StatementsThis communication contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "target," "stabilization," "confident," "preliminary," "initial," "drive," "innovate" and similar expressions and variations or negatives of these words. Forward-looking statements address matters that are, to varying degrees, uncertain and subject to risks, uncertainties, and assumptions, many of which that are beyond DuPont's control, that could cause actual results to differ materially from those expressed in any forward-looking statements. Forward-looking statements are not representations or warranties or guarantees of future results. Some of the important factors that could cause DuPont's actual results to differ materially from those projected in any such forward-looking statements include, but are not limited to: (i) the ability of DuPont to effect the Intended Electronics Separation and to meet the conditions related thereto; (ii) the possibility that the Intended Electronics Separation will not be completed within the anticipated time period or at all; (iii) the possibility that the Intended Electronics Separation will not achieve its intended benefits; (iv) the impact of Intended Electronics Separation on DuPont's businesses and the risk that the separation may be more difficult, time-consuming or costly than expected, including the impact on DuPont's resources, systems, procedures and controls, diversion of management's attention and the impact and possible disruption of existing relationships with customers, suppliers, employees and other business counterparties; (v) the possibility of disruption, including disputes, litigation or unanticipated costs, in connection with the Intended Electronics Separation; (vi) the uncertainty of the expected financial performance of DuPont or the separated company following completion of the Intended Electronics Separation; (vii) negative effects of the announcement or pendency of the Intended Electronics Separation on the market price of DuPont's securities and/or on the financial performance of DuPont; (viii) the ability to achieve anticipated capital structures in connection with Intended Electronics Separation, including the future availability of credit and factors that may affect such availability; (ix) the ability to achieve anticipated credit ratings in connection with the Intended Electronics Separation; (x) the ability to achieve anticipated tax treatments in connection with the Intended Electronics Separation and completed and future, if any, divestitures, mergers, acquisitions and other portfolio changes and the impact of changes in relevant tax and other laws; (xi) risks and costs related to each of the parties respective performance under and the impact of the arrangement to share future eligible PFAS costs by and among DuPont, Corteva and Chemours, including the outcome of any pending or future litigation related to PFAS or PFOA, including personal injury claims and natural resource damages claims; the extent and cost of ongoing remediation obligations and potential future remediation obligations; and changes in laws and regulations applicable to PFAS chemicals; (xii) indemnification of certain legacy liabilities; (xiii) the failure to realize expected benefits and effectively manage and achieve anticipated synergies and operational efficiencies in connection with the Intended Electronics Separation and completed and future, if any, divestitures, mergers, acquisitions, and other portfolio management, productivity and infrastructure actions; (xiv) the risks and uncertainties, including increased costs and the ability to obtain raw materials and meet customer needs from, among other events, pandemics and responsive actions; (xv) adverse changes in worldwide economic, political, regulatory, international trade, geopolitical, capital markets and other external conditions; and other factors beyond DuPont's control, including inflation, recession, military conflicts, natural and other disasters or weather-related events, that impact the operations of DuPont, its customers and/or its suppliers; (xvi) the ability to offset increases in cost of inputs, including raw materials, energy and logistics; (xvii) the risks associated with continuing or expanding trade disputes or restrictions, new or increased tariffs or export controls including on exports to China of U.S.-regulated products and technology; (xviii) the risks, including ability to achieve, and costs associated with DuPont's sustainability strategy, including the actual conduct of DuPont's activities and results thereof, and the development, implementation, achievement or continuation of any goal, program, policy or initiative discussed or expected; (xix) other risks to DuPont's business and operations, including the risk of impairment; and (xx) other risk factors discussed in DuPont's most recent annual report and subsequent current and periodic reports filed with the U.S. Securities and Exchange Commission. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business or supply chain disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on DuPont's consolidated financial condition, results of operations, credit rating or liquidity. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. DuPont assumes no obligation to publicly provide revisions or updates to any forward-looking statements whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. 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Yahoo
21-03-2025
- Business
- Yahoo
DEP issues notice of violation over Orrington mercury contamination
Mar. 20—The Department of Environmental Protection issued a notice of violation to Mallinckrodt US LLC over failing to remove mercury that has contaminated the surrounding soil for more than a decade. In the notice issued Wednesday, the DEP charges that Mallinckrodt has done an insufficient job removing the hazardous materials and has attempted to dodge its legal responsibilities surrounding the cleanup. The company, which operated a chemical manufacturing plant along the Penobscot River in Orrington between 1967 and 1982, was deemed responsible for cleaning up the river and surrounding area by a federal judge in 2015. In 2022, a judge ordered the company to pay at least $187 million to clean up the region. While under Mallinckrodt's control, the site discharged between six and 12 metric tons of mercury in the late 1960s and early 1970s, according to one court-ordered study. The plant was eventually shut down in 2000, when then-owner HoltraChem Manufacturing Co. declared bankruptcy. The department charges that Mallinckrodt has violated its orders "on an ongoing, daily basis" since at least Feb. 5, 2024, by failing to properly remove and dispose of mercury-contaminated soils. The company has also failed to provide the required corrective measures implementation plan during that time frame, the department said in its notice. The department previously ordered that all soil with mercury concentrations above 2.2 parts per million must be removed from the plant. It reminded Mallinckrodt of this rule in a June 2023 letter, according to the notice. The company replied nearly two months later, requesting a meeting to discuss potential "flexibility" in fulfilling its requirements, according to the notice. The DEP reiterated that "although meeting the 2.2 ppm ... may present technical challenges," that threshold is part of a legal order "and is therefore nonnegotiable." Months of back and forth followed, during which time the company attempted to submit insufficient cleanup plans despite warnings by the DEP, the notice said. The DEP offered modifications to Mallinckrodt's latest plan in January 2024, which the company has still not addressed, according to the notice issued Wednesday. In December, it sent a letter to the Board of Environmental Protection asking to be relieved of the department's orders, according to the notice. "Despite the requirement of the DEP Orders and repeated reminders by the DEP that Mallinckrodt remove all soils at the Site that the exceed the MPS of 2.2 ppm for mercury to protect public health, safety and the environment, Mallinckrodt has repeatedly attempted to evade this clear requirement," the DEP said in the notice Testing completed in 2023 found some soil surrounding the plant to contain as much as 12.8 ppm of mercury, according to the notice. Mallinckrodt must submit a detailed plan for removing solid materials from the remaining areas within 30 days of receiving the notice. If the DEP approves that plan or provides approval with modifications, the company will then have 15 days to begin implementing it. The department did not specify the precise consequences, including fees, it plans to pursue for Mallinckrodt. Under Maine law, failing to adhere to orders and decisions imposed by the department commissioner or Board of Environmental Protection can carry fines of between $100 and $10,000. The maximum penalty increases to $25,000 for violations involving hazardous waste, the department said in its notice. Copy the Story Link
Wall Street Journal
14-03-2025
- Business
- Wall Street Journal
Wall Street Reacts Coolly to Endo-Mallinckrodt Deal
Endo and Mallinckrodt, two drugmakers seeking to recover from opioid lawsuits and bankruptcies, are betting a combination will help. Investors took a dim view Thursday. Shares of Endo fell more than 4% on Thursday after the company said it would merge with Mallinckrodt in a $6.7 billion deal including debt. (After emerging from bankruptcy, Dublin-based Mallinckrodt became a privately held company.)
Yahoo
14-03-2025
- Business
- Yahoo
Drugmakers Mallinckrodt and Endo get a bump from tariffs in $6.7 billion merger
By Sabrina Valle (Reuters) -Mallinckrodt and Endo, drugmakers which recently emerged from bankruptcy after a wave of U.S. opioid lawsuits, announced plans Thursday to join forces in a deal valued at $6.7 billion. Mallinckrodt Chief Executive Siggi Olafsson said the companies' operations and products complement each other. With large manufacturing facilities in the U.S., he said the combined company could actually see some benefit from U.S. President Donald Trump's tariffs on imported goods. "We saw (tariffs), in a way, as an opportunity," Olafsson told Reuters, adding that the companies have a manufacturing base in the U.S. for many key products. "That helps us." Endo shareholders will get $80 million in cash and own 49.9% of the combined company, while Mallinckrodt shareholders will own the rest for an enterprise value of $6.7 billion, the companies said on Thursday. The merger transforms two companies, previously at risk of closure due to declining revenue and lawsuits on their highly addictive opioid drugs, into a U.S.-focused entity specializing in generic drugs, urology, and various autoimmune and rare diseases, set to be listed on the New York Stock Exchange. TRUMP EFFECT Deals between companies with strong U.S. bases have some protection from the whipsaw policy announcements coming out of Trump administration that have been roiling markets and disrupting M&A activity, four top healthcare bankers told Reuters this week. Those announcements include Food and Drug Administration firings potentially slowing drug approvals as well as a promised crackdown on drug prices that could reduce revenue projections and company valuations, they say. The uncertainty is making CEOs more hesitant to pursue big deals, the bankers added. Olafsson, the future CEO of the merged company, said that a robust U.S. manufacturing base will help the business to grow amid fierce competition from more than 200 generic drug makers. U.S. production also gives the combined company an advantage in an era in which disruptions like COVID-19 pandemic caused Asian product shortages. "It's a very crowded market," he said, adding he considers many of the generic products sold in pharmacies already "extremely low cost." The deal is expected close in the second half of 2025. The merged company will primarily operate in the U.S., with support in Europe, India, Australia, and Japan, and around 5,700 employees. OPIOIDS Both the companies sell generic treatments including highly-regulated drugs such as opioids which once played a bigger role on their sales. The overall market for opioids has gone down, Olafsson said, with the bankruptcy and lawsuits forcing the companies to increase standards and move quality control to the U.S., despite its higher costs. "It's a very different environment than you saw 10 years ago," he said. "We are very proud of the U.S.-based manufacturing, even though we pay our laborers a fair amount more than maybe we would do in Asia." The two firms plan to combine their generic drug businesses and Endo's sterile injectables unit into another company that executives plan to sell or spin off after the deal closes, a person close to the transaction said. Dublin-based Mallinckrodt went bankrupt twice - once in 2020 due to its high debt load and litigation over allegedly deceptive marketing of highly addictive generic opioids, and again in 2023 due to declining sales of its key branded drugs, including Acthar Gel. As part of its second restructuring, Mallinckrodt was able to trim $1 billion from its previously agreed upon opioid settlement that resolved about 3,000 lawsuits. Endo filed for bankruptcy in 2022 and completed its financial restructuring last year. Endo will become a wholly-owned unit of Mallinckrodt. Lazard served as Mallinckrodt's financial adviser, while Goldman Sachs & Co. LLC served as Endo's financial adviser.
Yahoo
14-03-2025
- Business
- Yahoo
Drugmakers Mallinckrodt, Endo in talks to merge, source says
(Reuters) -Mallinckrodt and Endo are exploring a potential merger that could be valued at about $7 billion, person familiar with the matter told Reuters on Wednesday. A deal could likely be announced as soon as Thursday, the person said. The two companies did not immediately respond to Reuters requests for comment. Both Mallinckrodt and Endo have in the recent years faced lawsuits for their alleged role in the U.S. opioid epidemic. While Mallinckrodt emerged from its second bankruptcy in November 2023, Endo returned last year. The drugmakers are discussing the terms of a transaction that would give each of them roughly 50% ownership of the combined entity, Bloomberg News, which first reported the deal, said, adding the company is expected to be listed on the New York Stock Exchange. Mallinckrodt, which makes branded and generic drugs, first filed for bankruptcy in 2020 due to its high debt, litigation over its allegedly deceptive marketing of highly addictive generic opioids and disputes over its drug pricing. As part of its second restructuring, the company was able to trim $1 billion from its previously agreed opioid settlement, that resolved about 3,000 lawsuits. Endo used to manufacture and sell a long-acting opioid painkiller called Opana ER, which was withdrawn in 2017 after the U.S. FDA said its benefit did not outweigh public health risks associated with opioid abuse. The drugmaker, which began its bankruptcy process in 2022, agreed to pay about $600 million in settlements to states and people afflicted by the opioid crisis and to stop promoting opioids to prescribers.
