Mallinckrodt sues US health agencies after Medicaid changes

May 21, 2019

The makers of Acthar gel Mallinckrodt has filed a lawsuit against the U.S. Department of Health and Human Services following changes to Medicaid rebate calculations. The lawsuit names the health agency’s Centers For Medicare And Medicaid Services, after the division changed how it calculated Medicaid discounts for Acthar gel.

Acthar is the Irish company’s biggest revenue generator, having brought about 35% of its total revenue last year.

According to Mallinckrodt, the calculation changes could mean it receives a charge of up to $600 million.

Last month, the U.S. Justice Department joined a pair of lawsuits that alleged Mallinckrodt-owned drugmaker improperly promoted Acthar through doctor kickbacks.

Read the Reuters report.

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