SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
September 23, 1997
Mallinckrodt Inc.
(Exact name of registrant as specified in its charter)
New York 1-483 36-1263901
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
7733 Forsyth Boulevard, St. Louis, MO 63105-1820
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, (314) 854-5200
including area code
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Item 5. Other Events
A press release was issued September 23, 1997. The relevant portion
of the text of that release was as follows:
MALLINCKRODT UPDATES INVESTORS ON NELLCOR ACQUISITION,
FIRST-QUARTER PROSPECTS
NEW YORK, September 23, 1997 - Mallinckrodt Inc. (NYSE:MKG) has
developed a comprehensive integration process for the recently
acquired Nellcor Puritan Bennett, and it will fully capture the value
of the acquisition, said C. Ray Holman, chairman and chief executive
officer. Holman and Mallinckrodt's chief financial officer, Michael
A. Rocca, spoke today at the Donaldson, Lufkin and Jenrette investors
conference here.
"The Nellcor business is progressing well, and we expect it to
fully achieve its objectives for the first quarter and the entire
fiscal year," Holman said. "It is living up to our expectations and
will be a strong contributor in coming years."
"Mallinckrodt is on course to achieve earnings in line with
consensus analyst estimates for fiscal 1998," Rocca said. "However,
first-quarter earnings from continuing operations will be below the
same period last year and from six to nine cents below consensus
analyst estimates before non-recurring charges," he said.
The primary factor affecting on-going earnings per share is
lower effective average selling prices on X-ray contrast media
products in the first quarter. Accelerated compliance growth among
members of group purchasing organizations served by Mallinckrodt has
led to effective lower selling prices. Mallinckrodt expects these
trends to moderate in coming months and to have a reduced impact in
the second half of the fiscal year. Continuing cost reduction
efforts and volume increases also will help offset the impact of
pricing pressures.
Non-recurring charges are related primarily to the acquisition
of Nellcor Puritan Bennett. Mallinckrodt also anticipates recording
a charge to be taken in connection with patent litigation involving
patient warming systems in critical care settings. A jury has set
damages of $16.8 million in the suit. Mallinckrodt will record a
yet-to-be-determined provision in the first quarter but believes the
finding of patent infringement is in error and will vigorously pursue
an appeal to reverse the decision.
Mallinckrodt serves healthcare and specialty chemicals markets
worldwide. The company has four major businesses - pharmaceuticals,
diagnostic imaging, respiratory care and specialty chemicals. The
St. Louis, Missouri-based company, with fiscal 1997 net adjusted
sales of $1.9 billion, operates in more than 100 countries. The
Mallinckrodt web site address is (www.mallinckrodt.com).
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Mallinckrodt Inc.
Roger A. Keller
Vice President, Secretary
and General Counsel
DATE: September 25, 1997
