DOJ Says Mallinckrodt Bilked Medicaid As Drug Price Soared

By Chris Villani (March 3, 2020, 4:35 PM EST) -- Mallinckrodt ARD Inc. shortchanged Medicaid by hundreds of millions of dollars as the company hiked the price of its drug H.P. Acthar Gel, the U.S. Department of Justice alleged in a False Claims Act suit unsealed Tuesday in Massachusetts.

Mallinckrodt and the company it bought in 2014 for $5.6 billion, Questcor Pharmaceuticals Inc., illegally underpaid rebates that were owed to the government as a result of the sharp price increase for Acthar, a gel used to treat a variety of conditions from multiple sclerosis to infantile spasms to kidney damage, the suit says. When Questcor acquired Acthar in 2001, the drug...

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