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Mallinckrodt Ordered to Face Another Acthar Price-Gouging Suit

Aug. 18, 2020, 9:20 PM

Mallinckrodt must face a labor union’s proposed antitrust class action over its decision to hike by a factor of 1,000 the price of a treatment for infantile spasms and multiple sclerosis, a federal judge in New Jersey ruled Tuesday.

Judge Robert B. Kugler gave a green light to claims that Mallinckrodt sought to shield the drug, Acthar, from competition by acquiring the U.S. rights to Novartis AG’s competing product, Synacthen, solely so no other company could enter the market with it.

For now, “this allegation is sufficient,” the judge wrote. “Assessing whether another firm could have successfully brought Synacthen to ...

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