In the very definition of ‘irony’, The FTC is preparing to file charges against Irish drug maker Mallinckrodt for allegedly using its monopoly to jack up the price of a drug used to treat lupus and multiple sclerosis by 2165%, after none other than Martin Shkreli filed suit.
As The New York Post reports, The FTC has been investigating Mallinckrodt and its Questcor unit for several years — shortly after Shkreli, then the chief executive of drugmaker Retrophin, filed suit in 2014 against the California company accusing it of acquiring the drug, Synacthen, from Novartis — and then shutting it down to protect its profitable rival drug.
Shkreli, as the chief executive of Turing Pharmaceuticals in 2015, drew national derision when he acquired the rights to Daraprim, a 50-year old-plus drug used to treat parasitic infections, and promptly increased the price to $750 from $13.50.
The 33-year old was indicted in December 2015 on securities law fraud — for allegedly cheating investors in a hedge fund he was running.
The FTC has been investigating whether the deal to acquire Synacthen gave Questcor a monopoly. Mallinckrodt bought Questcor in 2014 for $5.8 billion.
President Obama’s FTC, in its waning days, is likely to file a suit against Mallinckrodt for monopolizing the market for Acthar Gel, also used to control spasms in infants, a Washington source not directly involved in the case said.
Acthar Gel costs $28,000 for a vial, an increase from $1,235 a vial in 2005, according to published reports.
MNK is halted, limit down at its lowest price since Nov 2013…
Mallinckrodt warned its investors in June of the FTC probe, saying it “could have a material adverse effect on its financial condition, results of operations and cash flows.”
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