Mallinckrodt will pay $100 million to settle Federal Trade Commission claims that its U.S. subsidiary, Questcor, illegally raised the price of its autoimmune drug by 85,000 percent and purchased the rights to a cheaper version of the drug to keep it off the market, reports Bloomberg.
Here are 4 things to know.
1. Questcor purchased the rights to H.P. Acthar Gel — used to treat multiple sclerosis, infantile spasms and other life-threatening conditions — and raised the drug's price from $40 a vial to more than $34,000, according to a statement from the FTC.
2. In 2012, Questcor purchased the rights to a similar drug, Novartis' Synacthen — which was being sold in Europe and Canada at a much cheaper price — to monopolize the market, alleges the FTC.
3. Mallinckrodt acquired Questcor for $5.6 billion in 2014 and allowed the anticompetitive behavior to continue, according to the report.
4. Mallinckrodt reached a settlement agreement with the attorneys general in New York, Alaska, Maryland, Texas and Washington state, as well as with the FTC, reports Bloomberg. Each state will receive $10 million from the settlement and $2 million is set aside for attorney's fees, according to the FTC.
More articles on supply chain:
Supply chain tip of the week: How to manage excessive drug price hikes
Drug shortage spurs FDA to allow use of topical gel approved in Europe
Novartis to consider more US investments amid Trump tax cuts