Mallinckrodt PLC’s stock plunged as much as 26% in intraday trade Monday, after noted short seller Citron Research said the stock could fall a lot more than embattled peer Valeant Pharmaceuticals International Inc. . Citron published a report on Oct. 21 alleging accounting improprieties at Valeant related to its Philidor subsidiary. Valeant’s stock tumbled 19% that day, and over 40% since, prompting Valeant to sever ties with Philidor last week. Citron tweeted on Monday that at current prices, Mallinkrodt’s stock has significantly more downside than Valeant’s, and was a “far worse offender” of the reimbursement system–“more to follow.” The stock’s intraday low of $52.01 was the lowest level seen since January 2014. It has pared some of its losses, to be down 14% in recent afternoon trade.
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