Meaningful barriers to entry including the solid market exclusivity profile of the company's specialty branded drugs and Mallinckrodt's ability to manufacture complex generic products. Above-average profitability. Good geographic diversity. Revenue concentration in the company's top three products, somewhat mitigated by moderate therapeutic diversity. Ongoing pricing pressure in the pharmaceutical generics space affecting Mallinckrodt's top line and profitability. Weak late-stage pipeline with only two drugs under Phase-III trials. Low blockbuster count with only one product (H.P. Acthar Gel) exceeding $1 billion in sales. Leverage ratio maintained in the 4x-5x range in 2017 (reflecting our assumption of continued share repurchases and acquisitions partially funded with debt). Strong cash flow generation with over $550 million of projected free operating cash flow in 2017.
