What were the kickback allegations involving Acthar?
The DOJ alleged Mallinckrodt paid illegal subsidies through a foundation to cover Medicare copays, effectively presenting Acthar as free to patients while its price kept rising — covering 2010 to 2014.
The same Justice Department resolution included about $26.3 million to settle claims that Mallinckrodt paid illegal subsidies through three funds set up at a foundation to induce Medicare-reimbursed purchases of Acthar, and used those subsidies to counter doctors' and patients' concerns about its cost.
According to Fierce Pharma, the kickback claims covered 2010 to 2014, when Questcor allegedly worked with the Chronic Disease Fund to subsidise Medicare copays so the drug could be marketed as effectively free to patients while its price kept rising. The combined settlement was roughly $260 million, of which about $234.7 million resolved the rebate claims. It was tied to Mallinckrodt's first Chapter 11 restructuring and payable over seven years.