Mallinckrodt Settles Portion Of DOJ's Acthar Gel Kickback Claims; Charity Copay Probe Continues

$15.4m fine will resolve claims of "wining and dining" doctors to get them to prescribe Acthar. Mallinckrodt dropped NORD and switched to Chronic Disease Fund to administer its copay assistance program, a move that Mallinckrodt’s COO purportedly described as "mom & pop vs. WalMart."

DOJ
Mallinckrodt Kickback Settlement With DOJ Does Not Cover Charity CoPay Arrangements

Mallinckrodt PLC reached a settlement with the US Department of Justice to resolve a portion of the government's claims that it paid kickbacks to boost prescriptions of its H.P. Acthar Gel (repository corticotropin injection). But it is still in litigation over its arrangement with a charitable foundation, which could lead to a much higher payout.

The DOJ announced on 4 September that Mallinckrodt agreed to pay $15.4m to resolve claims that its Questcor Pharmaceuticals Inc. subsidiary paid illegal kickbacks to doctors, in the form of lavish dinners and entertainment, to induce them to prescribe Acthar

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