Keenova Therapeutics (MNK) Q2 2025 earnings summary

Executive summary

• Mallinckrodt and Endo completed their merger on July 31, 2025, forming a larger, diversified pharmaceutical company with expanded product diversity and capabilities.

• The $1.9 billion Endo acquisition was finalized post-Q2, with integration plans underway and a planned spin-off of Par Health in Q4 2025.

• Christiana Stamoulis was appointed as President and CFO, bringing biotech and finance expertise.

• Divestiture of Therakos business for $881.4 million, with proceeds used to reduce debt.

• Second quarter 2025 marked the last standalone results for both companies before the merger.

Financial highlights

• Mallinckrodt Q2 2025 net sales were $485.1 million, down 5.7% year-over-year; excluding Therakos, net sales grew 8.5%. Net income was $2.4 million, up from a $43.3 million loss; adjusted EBITDA was $137.2 million, down from $174.0 million.

• Endo Q2 2025 revenues were $447.8 million, flat year-over-year; adjusted EBITDA was $149.8 million, down from $175.8 million; adjusted net income was $64 million, down from $105 million.

• Gross profit for Mallinckrodt rose 18.9% to $231.8 million, with gross margin improving to 47.8% from 37.9%.

• Operating income for Mallinckrodt was $33.0 million, up from a loss of $59.4 million in Q2 2024.

• Cash flow from operations for H1 2025 was $161.7 million, up from $47.0 million in the prior year.

Outlook and guidance

• Combined company expects 2025 net sales of $3.57 billion–$3.62 billion and adjusted EBITDA of $1.10 billion–$1.13 billion.

• Par Health 2025 net sales expected at $1.72 billion–$1.75 billion, with adjusted EBITDA of $450 million–$470 million.

• Acthar Gel full-year net sales growth guidance raised to 20–30%; XIAFLEX revenue growth guidance reaffirmed at high-single digits.

• Plans to separate generics and sterile injectables businesses in Q4 2025, subject to board approval.

• Expects continued integration and non-recurring costs related to the Endo deal and planned separation.