Thu, Sep 21, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Chanos hits Express Scripts, Mallinckrodt Pharmaceuticals in SALT presentation

Friday, May 19, 2017

Bailey McCann, Opalesque New York:

Famed short seller Jim Chanos of Kynikos Associates used his presentation at the SkyBridge Alternative Conference (SALT) along with a separate media Q&A to take the US healthcare system to task and more specifically, announce shorts on Mallinckrodt Pharmaceuticals and Express Scripts.

Mallinckrodt Pharmaceuticals is known for its distribution of the drug Acthar, which is designed to treat spasms in infants. The drug can also be prescribed for several other afflictions and represents both the primary source of revenue for Mallinckrodt and a primary cost driver for Medicare Part D.

According to Chanos, Acthar is the revenue stream for Mallinckrodt. His Express Scripts short is also tied into Acthar, as a handful of Express Scripts subsidiaries are paid to distribute Acthar exclusively. Chanos notes that the cost to patients for Acthar, like many other drugs, is extraordinarily inflated."This alliance may lead to performance enhancing drug prices," Chanos said. "But may give investors the blues."

Business Insider reporter Linnette Lopez recently reported on the suspect relationships surrounding Acthar and Chanos' presentation filled out some additional details. "If you look at Express Scripts 10K, it reads very ominously," Chanos said, highlighting a lawsuit brought by Anthem, one of the largest insurers i......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Asia - Hedge funds used to love shorting China. Now, not so much, Fledgling China FoFs require careful use: NCSSF, Amac, Japanese banks turn to PE, hedge funds for returns[more]

    Hedge funds used to love shorting China. Now, not so much From Bloomberg.com: A sharp devaluation. A credit crisis. And an economic hard landing. That's what some of the biggest names in the hedge fund industry were predicting for China after the nation's stocks and currency tumbled in 2

  2. Launches - Orchard launches new credit platform, ETN based on hedge fund to launch on the LSE[more]

    Orchard launches new credit platform Orchard Platform has rolled out Deals as a part of its new platform launch. With the addition of Deals to their suite of technology solutions for loan originators and institutional investors, Orchard Platform takes the next step in their evolution. De

  3. Neuberger Berman closes $1.1bn Credit Opportunities Fund[more]

    Neuberger Berman, a private, independent, employee-owned investment manager, announced that NB Private Equity Credit Opportunities Fund LP closed on $1.1 billion of limited partner commitments. The Fund seeks to invest in the secured and unsecured debt of private equity-backed companies, primarily i

  4. Capital Dynamics launches mid-market private credit business[more]

    Capital Dynamics, a global private asset manager, has launched a dedicated Private Credit Asset Management business. Experienced industry executives Jens Ernberg and Thomas Hall have joined Capital Dynamics to co-lead the company's new private credit initiative. They are based in Capital Dynamics' N

  5. ...And Finally - FAN-antic[more]

    From Newsoftheweird.com: Jeffrey Riegel, 56, of Port Republic, New Jersey, left 'em laughing with his obituary's parting shot at the Philadelphia Eagles. In it, Riegel asked that eight Eagles players act as pallbearers, "so the Eagles can let me down one last time." Riegel owned season tickets for 3