Drugmaker Mallinckrodt PLC is finalizing a settlement proposal worth at least $1.6 billion that would place its U.S. generic-drug business into bankruptcy to address coming debt maturities and liabilities stemming from the opioid crisis, WSJ Pro Bankruptcy reported. The Ireland-based drugmaker is close to a proposed deal that includes a chapter 11 filing covering its U.S. generics business and a resolution of claims from hundreds of state and local governments stemming from the cost of combating opioid addiction. The settlement offers $1.6 billion to state and local governments over eight years and warrants to buy an equity stake in Mallinckrodt. The proposal, which would also require court approval, could be announced as soon as today. Mallinckrodt, one of the largest opioid makers in the U.S., previously acknowledged the risk of a bankruptcy over allegations it and other drugmakers misrepresented the health risks associated with the powerful painkillers they made.
