Much criticized Mallinckrodt bows out of PhRMA ahead of some tightened restrictions on membership
Just ahead of some new, more muscular rules governing who can be a part of the industry lobbying organization PhRMA, one of its most heavily criticized members is pulling out.
PhRMA confirmed to me Wednesday afternoon that Mallinckrodt — at the center of a lingering drug pricing scandal — has resigned from the trade group.
Just a few months ago, Mallinckrodt agreed to pay a $100 million fine to resolve a probe of the long, rather sordid history behind Acthar, an infantile spasm drug which cost $28,000 a vial when Mallinckrodt picked it up in the $5.6 billion acquisition of Questcor. Questcor had been jacking up the price on Acthar when it paid Novartis $135 million to gain US rights to a therapy that posed a direct threat to its drug franchise. And Mallinckrodt was forced to pay the fine for illegally maintaining a drug monopoly — not the kind of sanction PhRMA likes to see for members.
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