Drugmaker Mallinckrodt settles case on kickbacks to doctors

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

A drugmaker has agreed to pay $15.4 million to settle claims that a company it bought had it lavished doctors with dinners and entertainment to encourage them to keep prescribing a drug as its price ballooned.

Under an agreement announced Wednesday by the U.S. Department of Justice, Britain-based Mallinckrodt resolved kickback claims that were spelled out in a court filing earlier this year. The claims pertain to actions from 2009 to 2013 by Questcor Pharmaceuticals, a company Mallinckrodt has since purchased.

The government says the company raised the price of a roughly 5-dose vial of Acthar, used to treat conditions related to multiple sclerosis, lupus and other diseases, from $50 to $32,000 from 2001 through 2014.

In a statement, the company said it is glad to have the issue resolved.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Trending Stories