The fight over how much Mallinckrodt PLC must pay in Medicaid drug rebates for Acthar Gel (repository corticotropin injection) intensified as the US government intervened in a False Claims Act suit alleging the company underpaid hundreds of millions of dollars that were owed as a result of large price hikes for the drug.
Mallinckrodt has been battling with the government for several years over Medicaid rebate calculations for Acthar. The company filed suit against the Centers for Medicare & Medicaid Services last year challenging CMS's decision to require Mallinckrodt to change the base date average manufacturer price (AMP) that had been used to calculate Medicaid drug rebates for Acthar since 2013