Rite Aid notes decline on competitor news; Mallinckrodt paper weakens in pharma space

By James McCandless

San Antonio, Nov. 17 – Retail and pharmaceutical names in the distressed debt market were the focus of trading activity Tuesday.

Rite Aid Corp.’s notes lost ground after e-commerce giant Amazon.com Inc. announced that it would offer an online prescription drug service to consumers.

The 7.7% senior debentures due 2027 fell 2¾ points to close at 80¼ bid. The 8% notes due 2026 dropped 2½ points to close at 101½ bid.

The Camp Hill, Pa.-based drug store chain’s structure was under water after the Amazon.com announcement.

With Amazon Pharmacy, the retailer will offer customers the opportunity to have prescription medications delivered to their homes.

Meanwhile, pharma name Mallinckrodt plc’s paper ended the day worse off after as more governmental entities endorse the company’s settlement plan.

The 5¾% senior notes due 2022 chalked off ½ point to close at 33 bid. The 4¾% senior paper due 2023 slipped ¼ point to close at 7¾ bid.

Late Monday, news broke that the Staines-upon-Thames, England-based drug producer has received broad support for its blanket opioid settlement from more than a thousand government entities across the country.

Earlier in the year, the company reached a proposed $1.6 billion settlement for thousands of lawsuits brought over the propagation and marketing of opioids.

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