Mallinckrodt Pays $100M to Settle Price Gouging Suit

Jan 21, 2017

Bloomberg

Mallinckrodt PLC said it will pay $100 million to settle FTC charges that Questcor Pharmaceuticals illegally raised the price of its best-selling drug Acthar by 85,000 percent, and it bought the rights to a cheaper competing drug to keep it out of the U.S. market, according to a Bloomberg article.

The settlement forced Mallinckrodt to give a free limited U.S. license for that cheaper drug to a competitor, Marathon Pharmaceuticals, the story said.

The fine amounts to about a third of Acthar's quarterly sales.

Read the full story