Healthcare shares saw a slight increase, although they trailed behind the overall market, as investors shifted their focus to stocks with more potential in a robust economy.
Mallinckrodt Faces Legal Challenges
Mallinckrodt, the pharmaceutical company, recently disclosed that it is facing a grand jury subpoena due to its sales of controlled substances. This comes as the company files for bankruptcy for the second time in three years, aiming to reduce its prior commitment to compensate for its alleged involvement in the opioid crisis by approximately $1 billion.
According to Mallinckrodt, the subpoena was received from the U.S. Attorney’s Office for the Western District of Virginia. The request covers data and information dating back to 2017, including the company’s reporting of suspicious orders of controlled substances, chargebacks, and other transactions. Additionally, it seeks communications between Mallinckrodt and the Drug Enforcement Administration regarding these matters.
Acquisition Deal: Danaher and Abcam
Danaher, a global science and technology innovator, has reached an agreement to acquire biotech company Abcam. The deal is valued at an impressive $5.7 billion. However, investors of Abcam expressed their disappointment with the $24-per-share price, resulting in a decrease in American depositary receipts of Abcam on Monday.
Rite Aid Shares Rebound
After experiencing its worst one-day performance ever on Friday, shares of Rite Aid managed to rebound by 10%.