Mallinckrodt Public Limited Company (NYSE:MNK) Q1 2018 Earnings Conference Call - Final Transcript

May 08, 2018 • 08:30 am ET


Mallinckrodt Public Limited Company (NYSE:MNK) Q1 2018 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Q1 2018 Mallinckrodt Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to introduce your host for today's conference, Mr. Daniel Speciale, Investor Relations and Strategy Officer. Sir, you may begin.

Daniel Speciale

Thank you, Bruce. Good morning, everyone, and welcome to today's call. Joining me are Mark Trudeau, our CEO; Matt Harbaugh, our CFO; and Dr. Steve Romano, our Chief Scientific Officer.

Before we begin, let me remind you of a few details. On the call you will hear us make some forward-looking statements, and it is possible actual results could be materially different from our stated expectations. Please note, we assume no obligation to update these forward-looking statements, even if actual results or future expectations change materially. We'd encourage you to refer to the cautionary statements contained in our SEC filings for a more in-depth explanation of inherent limitations of such forward-looking statements.

We will also provide selected non-GAAP adjusted measures related to our financial performance. A reconciliation of these adjusted measures to GAAP is available in our earnings release, which can be found on our website, We use our website as a channel to distribute important and time-critical company information, and you should look to the Investor Relations page of our website for this information.

As noted in our press release, unless otherwise specified, all quarterly comparisons are to the comparable 2017 calendar period. And the net sales growth ranges we will be discussing are on a constant-currency basis. As a reminder, the recast historical financials related to the continuing operations of the business were shared last week and reflect the moving of the Specialty Generic Disposal Group to discontinued operations.

With that, let me turn the call over to Matt, who will take us through the financials. Matt?

Matthew Harbaugh

Thank you, Dan, and thanks to all of you for joining us today. For the first quarter of 2018, we saw a strong results led by a number of our key products. For the quarter, we reported GAAP diluted loss per share from continuing operations of $0.50 compared to $0.43 in the prior year. Our non-GAAP adjusted diluted earnings per share was $1.31 versus $1.04. Net sales for the quarter were $573 million from continuing operations, an increase of 2%.

Strong performances from INOMAX, OFIRMEV, and Therakos in the quarter were offset by a 10% decline in Acthar to $244 million. The first quarter has historically been the lowest period for Acthar net sales in any calendar year. We successfully closed the Sucampo acquisition in mid-February and made good progress on the integration. AMITIZA generated net sales of $23 million. Looking further at our Hospital franchise, INOMAX generated $140 million in net sales, a 9% increase, and OFIRMEV continued to see strong growth with $82 million in net sales,