Mallinckrodt’s first-quarter fiscal 2016 results were impressive, with the company beating on both top- and bottom-line estimates led by a solid performance at the Specialty Brands segment. The company expects growth to continue being driven by Acthar and Inomax, going forward. Moreover, Ofirmev is recovering after the trough in fiscal 2015. The company’s recent acquisitions should provide earnings accretion in fiscal 2016. However, the company is facing headwinds in the form of the reclassification of generic Concerta, which will continue impacting the generic segment, along with increased competition for oxycodone-related products. Gross margins are expected to be impacted by seasonality in Acthar sales in the second quarter of fiscal 2016.