Mallinckrodt (MNK) ADSs rose 3.7% Monday as it said it strongly disagrees with the allegations contained in the City of Rockford, Illinois’ complaint regarding the price of H.P. Acthar Gel, which was featured in a segment aired on Sunday in CBS’ 60 Minutes.
The program entitled “Why Does Your Prescription Cost So Much?” or “The Rockford File,” centered on claims made in a lawsuit brought by the City of Rockford, Illinois, alleging among other things, wrongdoing by Mallinckrodt and other companies related to the price and distribution of one of Mallinckrodt’s prescription medications, H.P. Acthar Gel, in the US.
Mallinckrodt said the price of H.P. Acthar Gel today is $38,892, before discounts provided to payers. Since acquiring the drug in late 2014, the company said it has only made modest price adjustments in the mid-single digit percentage range. In contrast to the drug’s prior owner Mallinckrodt has invested nearly $400 million into H.P. Acthar Gel, it said.
The company said it responded to 60 Minutes’ questions prior to the airing but that the producer never asked the company about its interactions with prescribing physicians. Mallinckrodt adheres to all regulations, guidance and codes related to interactions with health care providers, it said.