Mallinckrodt and a subsidiary have agreed to pay $100 million to settle allegations that they illegally maintained a monopoly after buying a rival drug to eliminate competition.
The complaint centers on the drug Acthar, which is used to treat infantile spasms and as a “last resort treatment” for other illnesses, the Federal Trade Commission said in a statement released Wednesday.
Hazelwood-based Mallinckrodt acquired Mallinckrodt ARD Inc., formerly known as Questcor Pharmaceuticals Inc., in 2014. Mallinckrodt is the only company with the right to sell Acthar in the U.S.
“Questcor took advantage of its monopoly to repeatedly raise the price of Acthar, from $40 per vial in 2001 to more than $34,000 per vial today – an 85,000 percent increase,” FTC Chairwoman Edith Ramirez said in a statement.
In addition to the fine, the company will have to grant a license to develop a synthetic alternative to Acthar to a licensee approved by the FTC. The company also must notify the FTC of any future acquisitions of rights to Acthar-like drugs.
Read more: St. Louis Post-Dispatch