Community Health ‘tapped’; Mallinckrodt down on FTC settlement; retailers struggle

By Colin Hanner

Chicago, Jan. 18 – The downward movement of a pair of distressed companies in the healthcare and pharmaceutical sectors were some of the biggest decliners on Wednesday’s session on an otherwise busy trading day.

“[Community Health Systems] is really getting tapped here at the end of day,” a trader said at the end of the market close, noting that several of its distressed notes were down several points on the heels of the continuing Affordable Care Act repeal saga in Washington.

Thames, England-based Mallinckrodt Pharmaceuticals joined the decliners list on the session on more concrete news that it had settled with the Federal Trade Commission on claims that the company raised the price of one of its drugs on the grounds of a monopoly.

A trader said distressed bonds were down several points.

Retailers continued to fall in line with the struggles of brick-and-mortar stores, including Neiman Marcus Group, Inc. and Toys “R” Us, Inc., which both saw several modest drops on the day. Toys’ 12% notes due 2021 were down 1½ points to 91½, a trader said. Neiman Marcus was down ¼ point in its 8¾% notes due 2021, which finished at 63¾.

Technology company Avaya Inc. saw one high-volume trade that brought down one of its securities to lows not seen this year on the back of uneasiness with the future in the company.

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