Mark Trudeau, CEO of Mallinckrodt Pharmaceuticals, appeared on CNBC’s Squawk Box to calm investor fears after the company’s stock dropped nearly 26 percent Monday.
Mallinckrodt stock values plummeted following a tweet Monday by noted short seller Citron Research.
Trudeau told CNBC that he rejected Citron’s contention that it would face challenges being reimbursed for a high-priced specialty drug.
Andrew Left of Citron, who accused Mallinckrodt of being an offender of the reimbursement system, said in an interview with CNBC that Trudeau misrepresented the efficacy of the drug maker’s biggest producer, Acthar. Trudeau called the accusations “completely false.”