Mallinckrodt declines as ALS study permanently halted, dialysis names under scrutiny

By Paul A. Harris

Portland, Ore., July 17 – Bonds of Mallinckrodt plc fell one point to two points on Wednesday, as the company stated that the phase 2b clinical study evaluating Acthar Gel in treating amyotrophic lateral sclerosis (ALS) is being permanently halted.

Additionally, a trader who works distressed names, pointing to the lackluster secondary market performance of a recent deal from U.S. Renal Care, Inc., said that high-yield dialysis care names are swimming into the purview of distressed players on the heels of the Trump administration effort to reshape how the government pays for health care, including an initiative to encourage home-based dialysis.

The broad high-yield market ended flat to slightly lower on Wednesday, with the CDX HY32 index of high-yield credit default swaps down 0.012 points in the early afternoon, at 107.198 bid, 107.278 offered, a hedge fund manager said.

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