Mallinckrodt (MNK) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales reached $468.3 million, up from $207.2 million year-over-year, driven by Acthar Gel and XIAFLEX growth and the Endo business combination.

• Acthar Gel net sales rose 47% to $170 million, marking the ninth consecutive quarter of growth and record new patient starts due to SelfJect adoption.

• XIAFLEX net sales increased 11% to $134 million, supported by higher demand, pricing, and new awareness campaigns.

• Completed merger with Endo in July 2025 and separation of Par Health in November 2025; results reflect continuing operations and pro forma comparisons.

• Loss from continuing operations was $113.5 million to $114 million, mainly due to higher SG&A, interest, R&D, and non-cash merger-related expenses.

Financial highlights

• Q1 2026 net sales were $468.3 million, up 126% year-over-year, led by Acthar Gel and XIAFLEX.

• Adjusted EBITDA from continuing operations was $174 million, up 37% year-over-year, reflecting core brand growth and synergy contributions.

• Gross profit was $186.6 million, with a gross margin of approximately 39.9%.

• SG&A expenses increased by $95.7 million (83.3%) year-over-year, mainly due to higher headcount, advertising, and professional services.

• Interest expense rose to $45.6 million from $28.5 million year-over-year due to assumed Endo debt.

Outlook and guidance

• Reaffirmed 2026 guidance: net sales of $1.94–$2.00 billion and adjusted EBITDA of $730–$760 million, including merger synergies.

• Acthar Gel net sales expected to grow in the mid-teens; XIAFLEX projected to grow mid- to high-single digits.

• On track to achieve $150 million annual pre-tax run-rate synergies by the third anniversary of the merger, with $23 million realized in Q1 2026 and ~$100 million planned for 2026.

• Guidance excludes potential acquisition or divestiture activity, including the possible sale of the PERCOCET business.

• Preparing for a potential NYSE listing in H2 2026, subject to board and regulatory approvals.