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Mallinckrodt files for bankruptcy protection amid U.S. opioid litigation By Reuters

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© Reuters. FILE PHOTO: Bottles of prescription painkillers Oxycodone Hydrochloride, 30mg pills, made by Mallinckrodt

(Reuters) – Mallinckrodt (NYSE:) Plc filed for Chapter 11 bankruptcy protection on Monday in the face of lawsuits alleging it fueled the U.S. opioid epidemic and after it lost a court battle to avoid paying higher rebates to state Medicaid programs for its top-selling drug.

The company listed both assets and liabilities in the range of $1 billion to $10 billion, according to a filing with the U.S. Bankruptcy Court for the District Of Delaware.

Mallinckrodt said in February it planned to have its generic drug business file for bankruptcy as part of a tentative $1.6 billion opioid settlement resolving claims by state attorneys general and U.S. cities and counties.

It further warned on Aug. 4 that the parent company and other units may also file for Chapter 11 protection after a judge allowed the federal government to force it to pay higher rebates to state Medicaid programs for its multiple-sclerosis drug H.P. Acthar Gel.

More than 3,000 lawsuits have been filed accusing drug manufacturers of engaging in deceptive marketing that promoted the use of addictive painkillers, fueling an epidemic that since 1999 has resulted in more than 450,000 overdose deaths.

Mallinckrodt said on Monday it intends to use the Chapter 11 process to implement a restructuring support agreement that would provide for an amended proposed opioid claims settlement and a financial restructuring.

The drugmaker said the company and all of its subsidiaries would continue to operate as normal.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

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Dow, S&P futures gain on hopes of progress in stimulus talks By Reuters

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© Reuters. FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange, in New York City

By Medha Singh

(Reuters) – Futures tracking the S&P 500 and the Dow edged higher on Friday, as investors anticipated progress in bipartisan talks over the next coronavirus aid bill ahead of the Nov. 3 presidential election.

U.S. House Speaker Nancy Pelosi said on Thursday there was progress in negotiations with the White House, but Senate Republicans remained skeptical of a possible deal costing trillions of dollars.

Uncertainly over the timeline of the relief legislature has been weighing on Wall Street’s major indexes, which were set to end a choppy week slightly lower.

Meanwhile, a record 47 million Americans cast ballots, eclipsing total early voting from the 2016 election. President Donald Trump and Democratic rival Joe Biden debated on Thursday for the last time to persuade the few remaining undecided voters 12 days before their contest.

At 06:24 a.m. ET, Dow E-minis were up 0.31% at 28,352 points, S&P 500 E-minis rose 0.17% to 3,455 points. E-minis fell 0.07% to 11,643 points.

Third-quarter earnings season chugged along with 126 S&P firms having reported so far. About 84% of them have topped quarterly profit estimates, according to Refinitiv data.

Chipmaker Intel Corp (O:) tumbled nearly 10% in premarket trading after it reported that margins fell as consumers bought cheaper laptops and pandemic-stricken businesses and governments clamped down on data center spending.

Gilead Sciences Inc (O:) jumped 5.8% as its antiviral drug remdesivir became the first and only drug approved for treating patients hospitalized with COVID-19 in the United States.

Apple Inc (O:) edged 0.3% higher as two of its latest iPhone 12 models went on sale in China on Friday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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StockBeat: Hotel Heartbreak Eases – a Little

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© Reuters.

By Geoffrey Smith 

Investing.com — The hotel industry began the long road back to some kind of normality in the third quarter, but figures from Europe’s two biggest operators show just how long it will be.

Revenue per available room, the key metric for hotel investors, was down 53% at InterContinental Hotels Group (LON:), which owns the Holiday Inn and associated franchises in the three months, and was down 63% at Accor (PA:), owner of the Ibis and Sofitel chains among others.

The figures, while dismal, were in both cases a significant improvement from the second quarter, and Accor’s shares in particular profited, rising 4.2% by mid-morning in Europe on Friday after CEO Sebastien Bazin said that the worst was behind the company. IHG stock fell 1.3%.

However, this is a pallid optimism. Even Bazin’s group is predicting that bookings won’t return to pre-pandemic levels until 2023. In the meantime, Bazin told France 24, “60% of the hotel industry is distressed, 40% is optimistic” as they face the prospect of full winter of Covid 19.

On Thursday, France had extended its curfew to an area covering three-quarters of its population after posting its highest daily figure yet for new infections. In Spain, Germany and the U.K., all key markets, officials bemoan that the virus is currently out of control, despite various attempts to restrict non-essential social contact.  Bazin urged European governments to be more clear and coordinated in their guidelines on travel, after an abortive summer tourism season when official guidelines changed at dizzying speed and with little or no consistency.

IHG CEO Keith Barr acknowledged that “uncertainty remains regarding the potential for further improvement in the short term.”

Barr’s conservatism is an implicit acknowledgment that he expects the U.S. market, which accounts for more of IHG’s business, to broadly follow the European one as the latest wave of the pandemic gains force there. That could leave Asia as the sole ray of sunshine for both companies. At IHG, RevPAR has already recovered to be down only 23% year-on-year in Greater China.

Both CEOs strove to put a brave face on the medium term, however. And not without reason: conventional wisdom says that when the vaccines are finally distributed and fear of public spaces recedes, hotel stocks should be among the best performers around. Pent-up demand and fading tail risks should allow a violent reversion to the mean.

But is there anything to hope for beyond that? The pre-pandemic assumptions of endless growth in world tourism will have to be tested anew as life returns to normal, and business travel budgets will remain crimped long after the vaccines arrive. IHG has in general created value over the last two decades but Accor hasn’t posted a new all-time high since 2007, and even though Bazin is finally pushing the group towards an ‘asset light’ model that should generate higher returns on equity and demand a higher valuation, the onus is squarely on him to prove it. 

Talking to Bloomberg TV earlier, Bazin dismissed the notion of M&A activity, which would offer the quicker path to capacity rationalization and higher margins. That may disappoint some, but the truth is that Accor’s current valuation doesn’t allow to hope for an active role in any such consolidation. The question is only whether or not Accor is ‘in play’.

IHG may have the better opportunities for driving the process, but Barr gave no hint of anything on the horizon in his statement. For investors, holding the stocks continues to require even more patience and tolerance of uncertainty than for most other assets.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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China’s carmakers seek more government support for smart car supply chain By Reuters

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© Reuters.

By Yilei Sun and Brenda Goh

XIAN, China/SHANGHAI (Reuters) – China’s auto industry has called for more government support and tie-ups between auto and tech companies on technologies, such as software and semiconductors, to make the country’s smart car supply chain more self-sufficient.

Government officials and industry executives at the 2020 China Auto Supply Chain Conference, held in the northwestern city of Xian this week, said the supply chain of in-car operating systems and other core technologies lagged behind international levels, a situation they want to change.

China, the world’s biggest auto market, wants sales of vehicles with intelligent functions like internet connectivity and autonomous driving to make up 30% of overall new vehicle sales by 2025.

Beijing has been trying to boost domestic tech capability by pouring billions of dollars into sectors such as semiconductors, after trade tensions between China and other countries, including the United States, exposed the country’s reliance on foreign know-how.

“China’s supply chain of in-car operating system, software and other key core technologies are still far behind the international advanced level,” Ma Chunsheng, an official at the Ministry of Industry and Information Technology, said.

Ma said the government will encourage companies from different industries to work together on key technology breakthroughs like car operation systems.

“Technology startups face financial difficulties and urgently need the government to issue strategic support measures,” said Luo Junmin, senior executive at the China Association of Automobile Manufacturers. Jumin said the government should offer better fundraising platforms to those companies to “support the transformation and upgrading of the automobile industry.”

In-car software and semiconductor products are expected to make up the majority of cars costs by 2030, a recent research report by consultancy Roland Berger and industry think tank China EV 100 estimated.

Chinese internet companies, including Alibaba (HK:) and Baidu (O:), have launched partnerships with automakers, while Huawei Technologies, BYD (SZ:) and startup Horizon Robotics are developing semiconductor products.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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