(Bloomberg) -- Mallinckrodt Plc shares plunged on Monday after a report in the Wall Street Journal that the drugmaker is considering the possibility of putting its U.S. generic-drug business into bankruptcy.
Shares were down 26% to $3.79 at 3:29 p.m. in New York. The Journal said that Mallinckrodt, one of the largest opioid makers in the U.S., has begun confidential discussions with creditors regarding the potential bankruptcy.
A bankruptcy filing would allow the company to address upcoming debt payments and liabilities related to its role in the U.S. opioid crisis, the Journal's article said.
A spokesperson for Mallinckrodt declined to comment. The company is scheduled to report fourth-quarter financial results on Tuesday.
Mallinckrodt and other drugmakers, along with pharmaceutical distributors and retail pharmacies, are facing thousands of lawsuits accusing them of fueling an opioid epidemic that has ravaged communities across the U.S.
In September, Bloomberg reported that Mallinckrodt had hired restructuring advisers to help limit its potential legal liabilities.
To contact the reporter on this story: Angelica LaVito in New York at alavito@bloomberg.net
To contact the editors responsible for this story: Drew Armstrong at darmstrong17@bloomberg.net, Timothy Annett, Mark Schoifet
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