Mallinckrodt PLC shares dropped 2.4% in premarket trade Wednesday after the company was downgraded to neutral by Goldman Sachs. The company reported third-quarter profit and revenue misses on Tuesday, including a sales decline for its key multiple sclerosis and infantile spasms drug Acthar, and Goldman Sachs analyst Dana Flanders questioned the sustainability of Acthar growth and whether the company will take near-term strategic action. Acthar results were affected by a large share of prescriptions not getting filled due to both health insurer and patient factors, Flanders said, yet “while MNK pointed to a challenging payor environment that is impacting the entire industry – we have not yet seen this sharp decline more broadly across the sector.” A previous buy rating reflected an expectation that Acthar sales would continue to grow, Flanders said. Mallinckrodt shares have dropped nearly 50% over the last three months, compared with a 4.4% rise in the S&P 500 .
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