Mallinckrodt Settles Anti-Competitive Practices Suit

Mallinckrodt and the Federal Trade Commission (FTC) recently agreed to settle allegations of raising drug prices and engaging in anti-competitive practices by paying a $100 million fine and allowing a competitor to produce a similar medication. The drug, H.P. Acthar Gel, is used to treat infantile spasms and multiple sclerosis. Mallinckrodt allegedly raised the price of the prescription from $40 per vial to over $34,000 per vial. According to New York Attorney General Eric Schneiderman’s office, Mallinckrodt’s United States subsidiary (Questcor) purchased the drug in 2001 and raised the price an estimated 85,000% over the course of time. The complaint filed by the government and three state attorneys general further alleges Questcor thwarted attempts by competitors to introduce similar drugs into the marketplace by constantly out-bidding them in attempts to acquire Synacthen – a drug used to treat the same conditions. In addition to paying the fine, Mallinckrodt will license Synacthen to Marathon Pharmaceuticals for infantile spasms and nephrotic syndrome, two FDA-approved uses of Acthar. However, Mallinckrodt will retain the right to the drug for other indications, such as Duchenne muscular dystrophy. FTC Chairwoman Edith Ramirez released a statement, saying, “Questcor took advantage of its monopoly to repeatedly raise the price of Acthar, from $40 per vial in 2001 to more than $34,000 per vial today – an 85,000% increase. We charge that, to maintain its monopol...
Source: Policy and Medicine - Category: American Health Authors: Source Type: blogs