Event-Driven Stocks

Formerly Mallinckrodt plc

Spin-offSpun off from Covidien

The two companies

Parent
Surgical & Medical Instruments & Apparatus
↓ spun off ↓

Open either company's hub for its full SEC financials, ratios, ownership, filings, and every other event it's been part of.

Sector
Healthcare
Industry
Pharmaceutical Preparations
Exchange
State of incorporation
L2
Record date
June 19, 2013
Distribution date
June 28, 2013
Ratio
1:8
Parent sector
Surgical & Medical Instruments & Apparatus
Form
10-12B/A
Filed
June 5, 2013

Financials — parent vs spin-off

SEC XBRL · latest year
CovidienFY14
Revenue
Operating income
$1.99B
Net income
$441M
Total assets
$20.70B
Equity
$10.06B
Keenova Therapeutics plcFY25
Revenue
$1.43B
Operating income
−$348M
Net income
−$490M
Total assets
$5.63B
Equity
$2.07B

Latest reported figures from each company's own SEC filings — the parent after the separation and the spin-off as a standalone. Full multi-year history on each company hub.

Spin-off signals

score 1/8 favorable · factors, not advice
  • Focus-increasingNo — both Healthcare

    Spin-offs into a different sector than the parent (pure-plays) have historically outperformed diversifying ones.

  • Leverage (liabilities/assets)63%

    A heavy debt load loaded onto the spin-off is a known risk; a clean balance sheet is favorable.

  • Return on capital employed-7.0%

    EBIT ÷ capital employed — the quality metric the spin-off scorecard research weighs most.

  • Operating margin-24.3%

    Profitability of the standalone business, from its own SEC filings.

  • Tax-basis reportNone found

    A Form 8937 (basis allocation) accompanies tax-free §355 spin-offs — favorable for taxable holders.

  • Insider buying (post-spin)None recorded

    Officers/directors buying their own newly independent shares (Form 4) has historically preceded outperformance.

  • Activist holder13D on file

    An activist with a 5%+ stake (Schedule 13D) is a potential value-unlock catalyst.

  • Time since spin-off12.9 years

    Studies find the spin-off return premium concentrates in roughly the first one to three years.

Factors the spin-off research literature (Greenblatt; Cusatis-Miles-Woolridge; Desai-Jain) associates with outcomes — computed from this company's own SEC filings, shown as factors, not a recommendation. The premium is debated and not guaranteed. How we compute these ↗

Filings & documents

Every entry traces to SEC EDGAR. The Information Statement is the primary source; the links below open the full filing and each company's complete filing history.