Q2 2024 Mallinckrodt PLC Earnings Call
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Okay.
Operator: Good day, and thank you for standing by, and welcome to Mallinckrodt's Q2 2024 earnings announcement. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Derek Belz, Vice President of Investor Relations. Please go ahead.
Speaker Change: Good day, and thank you for standing by and welcome to the Mallinckrodt Q2, 'twenty 'twenty four earnings announcement at this time all participants are in listen only mode.
Speaker Change: After the Speakers' presentation there'll be a question and answer session to ask a question during the session you'll need to press star one on your telephone.
Speaker Change: And then here in the automated message advising your hand is raised to withdraw your question. Please press star one again, please be advised that today's conference is being recorded.
Derek Belz: Thank you, Operator, and welcome everyone. With me this morning are Mallinckrodt's CEO, Siggy Olsson, and CFO, Bryan Reasons. Before we begin, let me remind you that we will make forward-looking statements on this call, and it's possible that actual results could be materially different from our stated expectations. Please note these forward-looking statements are made as of today, and we assume no obligation, even in the event of new information, or if actual results or future expectations change materially.
Derek Belz: We encourage you to refer to the cautionary statements contained in our SEC filings for a more in-depth explanation of the inherent limitations of such forward-looking statements. We will also provide select non-GAAP-adjusted measures related to our financial performance on this call. A reconciliation of these non-GAAP measures is included in our earnings release, which can be found on our website, mallinckrodt.com. 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.
Derek Belz: As noted in our earnings release, our second quarter ended on June 28, 2024, and the comparative periods we'll be discussing this morning are the predecessor quarter ended June 30, 2023, and the sixth month ended June 30, 2023. Additionally, unless otherwise specified, the net sales percentage change we discussed will be on a constant currency basis.
Derek Belz: With that, I will now turn the call over to Siggy. Okay?
Siggy Olsson: Thanks Derek and good morning everyone. It's great to be with you today.
Siggy Olsson: We thought it was appropriate to hold a call this quarter given the Theracords transaction we announced yesterday, our recent launch of Selfjet, and the significant progress we are making as we continue to strengthen our business and deliver on our strategic priorities. Each of these factors gives us confidence in our ability to sustain growth in this business for the rest of the year and for the foreseeable future. We are very proud of what we have achieved with Theracorse, and we are confident that it will continue to thrive under CVC's ownership.
Speaker Change: High quality generic medicines.
Speaker Change: The active pharmaceutical ingredients or Apis.
Speaker Change: This differentiates us in terms of both quality and consistency of supply in the marketplace that is challenged by both as well as quarter uncertainties.
Speaker Change: Even though we more than doubled our net sales from ADHD products on a year over year basis. The market continues to experience shortages of these important medicines.
Speaker Change: So we are investing this year to add capacity to our API production.
Speaker Change: Expand our manufacturing capabilities for the finished dose products.
Speaker Change: We expect these investments will help to increase access to these important ADHD therapies in 2025.
Speaker Change: And of course, we remain committed to the responsible manufacturing of controlled substances on the continuous improvement of our already robust compliance programs.
Each of these factors give us confidence in our ability to sustain growth in this business for the rest of the year and for the foreseeable future.
Speaker Change: Let me now talk about the specialty brands segment were after Gail has been a success.
Gail: Success story this year.
Gail: Yeah.
Gail: We intend to use the proceeds to eliminate more than 50% of mallinckrodt net debt.
Gail: This will meaningfully advance our strategic priority to further optimize our capital structure.
Gail: This transaction is also a positive outcome for the <unk> business and the patients providers and healthcare partners. It serves.
Speaker Change: PVC is a leading investment firm with deep expertise in health care.
Gail: Under <unk> ownership, the <unk> business is expected to benefit from additional investments in research development indication expansion and geographic expansion.
Gail: Key employees, who work on payroll costs will join CVC and continue supporting the product and its stakeholders.
Gail: Looking ahead, we expect the transaction to close in the fourth quarter of this year subject to regulatory approvals and other customary closing conditions.
Speaker Change: We are very proud of what we have achieved without of course, and we are confident that it will continue to thrive under the cvc's ownership.
Gail: With that I'll turn the call over to Brian to discuss our financial performance.
Brian: <unk> full year outlook in more detail.
Operator: And thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
Brian: Okay.
Brian: [music].