Coca cola’s missing cocaine- who is america’s plug? via /r/wallstreetbets #stocks #wallstreetbets #investing

Coca cola imports around 100 metric tonnes of coca leaf every year to Stepan company, where it gets extracted into an alkaloid slurry (a black tarry mix of cocaine alkyloids and others). That gets sent to Mallinckrodt where cocaine is extracted to a tune of 1% gross yield from leaf. that’s of 500-1000 kilos of cocaine. Coca cola makes up most of the coca imports into USA, and its supply chain is grandfathered in as the only one able to process coca material.

This is really about drugs, but I’m going to start with Mallinckrodt which is the most shifty character in this supply chain.

The main medicine they produce with cocaine is acthar gel, which is worth $800,000/L for a gross profit of $350MM yearly. that’s only accounting for at most 50 liters of gel form cocaine, or about 50 kg if it were made of pure cocaine (it’s not but for this I’m assuming some loss).

but then it goes to the medical supply market in raw form. for the AMAZING fucking price of $25/oz (page 33 of “Pharmacology and Abuse of Cocaine, Amphetamines, Ecstasy and Related Designer Drugs”) so it aint worth shit. The demand for medical cocaine HCL in the usa for 2018? 29 KG.

Surely they can’t be backdooring cocaine out of a publicly listed company?

https://www.justice.gov/opa/pr/mallinckrodt-agrees-pay-record-35-million-settlement-failure-report-suspicious-orders

And then when they finally did get caught with oxycodone:

https://www.fiercepharma.com/pharma/crippled-by-opioid-crisis-litigation-mallinckrodt-settlement-brings-company-closer-to

Which ultimately bankrupted them. So why did the stock never delist? It looks like they held it together just enough to make it all the way out of bankruptcy. So now we have a medical giant with a market cap of $9.2MM emerging from bankruptcy. And they’re propped up by black market sales of most of their most addictive drugs.

Which includes fentanyl- which is why I could never suggest to buy this horrendously undervalued company, but by financials and fundamentals the company is worth more than 9 million in assets right now- by about 51 million on acthar’s patent alone. These guys are likely providing sketchy buyers drugs that are killing Americans.

so why did this easy target not get shorted into the dirt? unable to borrow and unable to pay its debt, no money to buy shares back. It should have gone down as unsuccessful, with patents sold at auction. Why did no other corp acquire it? There’s no reason why they’ll stay at 0.12 per share- this is a company that was well over 1.2 billion market cap before bankruptcy with shares around $50.

The answer I believe lies in 420-920 missing kilos of 99.9% pure cocaine HCL every year. Here’s where it’s for sale:

https://www.mallinckrodt.com/products/generics/compounding-powders/cocaine-hydrochloride-usp-cii/

https://mms.mckesson.com/product/448166/Mallinckrodt-00406152053

Submitted March 06, 2022 at 01:04AM by bannannamo
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