BUZZ-Mallinckrodt shares slip, Endo jumps, day after Valeant meltdown

Wed Mar 16, 2016 10:53am EDT
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(Adds Endo trading, updates Mallinckrodt shares)

** Shares of Mallinckrodt down 7.1 pct in Wednesday morning trading, after tumbling 14.5 pct on Tuesday on report from Valeant Pharmaceuticals that wounded shares of specialty drugmakers

** Mallinckrodt shares slide as much as 14.5 pct to $50.90 at one point today, lowest level since January 2014, before paring losses

** Endo International shares rising over 10 pct, biggest percentage gainer in S&P 500, day after Endo shares dropped 22.6 pct after Valeant report

** Valeant shares were sliced in half on Tuesday after the company said a delay in filing its annual report put it in danger of a default and it cut its 2016 forecasts

** JP Morgan analyst Chris Schott said in research note that he expects Valeant headlines to continue to weigh on the sector, noting "it's hard to call a bottom in sentiment in the near-term."

** Short-seller Andrew Left of Citron Research and Mallinckrodt Chief Executive Mark Trudeau debated the company on CNBC television on Tuesday

** MNK shares trading at a forward PE of 6.7x, ENDP trading at 5.9x, according to Thomson Reuters data