Feds' Rebate Switch May Cost Mallinckrodt $600M, Suit Says

Law360 (May 21, 2019, 7:47 PM EDT) -- Mallinckrodt slapped the Centers for Medicare and Medicaid Services with a lawsuit claiming the agency's push to force the pharma giant to change the formula dictating how much it owes in Medicaid rebates for hormone drug Acthar violates the company's due process rights and could cost it as much as $600 million in back rebates.

Mallinckrodt ARD LLC filed a complaint on Monday in D.C. federal court taking aim at a CMS notice telling the company to change Acthar's "base date average manufacturer price," which the company said was part of an elaborate calculation used to determine a drug's Medicaid rebate amount....

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