Opioid litigation concerns weigh on pharmaceutical loan borrowers

The opioid crisis came to the loan market last week, as the potential fallout from lawsuits weighed on manufacturers of the drugs cited as a root cause of the epidemic. Pharmaceutical company Endo International's US$ 3.4 billion term loan was quoted at 97.75-98.5 on Monday, unchanged from Friday but down from 99.625-100.125 on March 4, as its stock fell 23% during the same five-day period. The drop followed a Reuters report that fellow drug producer Purdue Pharma, the maker of OxyContin, was exploring bankruptcy to address liabilities stemming from lawsuits tied to the opioid crisis. The US$ 1.6 billion loans for competitor Mallinckrodt Pharmaceuticals, which plans to spin off its specialty generic drug business, was also lower, quoted at 95-96 Monday from 96-96.75 on March 4. Pharmaceutical companies that produce opioids have been under pressure as the government cracks down on drugs they say are addicting and state attorneys general filed lawsuits against the manufacturers.