|
 The lawsuit against the HHS and the Centers for Medicare and
Medicaid Services was filed in May over changes in the calculation
of Medicaid discounts for Acthar gel, the company's biggest
money-spinner. (http://bit.ly/2PNaeFz)
Changes to the Medicaid rebate calculations could result in a near
10% hit to annual sales of Acthar, its costly treatment for multiple
sclerosis and a rare infant seizure disorder, the company said in
May.
The drugmaker on Tuesday reported a 20.8% fall in sales of Acthar
gel for the quarter ended Sept. 27 due to the continued
reimbursement challenges.
Mallinckrodt, among opioid manufacturers facing thousands of
lawsuits seeking to hold them responsible for fueling an addiction
crisis in the United States, is also grappling with an industrywide
decline in generic drug prices and competition to two of its
important drugs.
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Against this backdrop, the company in August suspended plans to spin
off its specialty generics unit, citing opioid litigation
uncertainties, and also warned Acthar gel revenue was unlikely to
exceed $1 billion this year.
Shares of the company, which in September agreed to sell its
contract manufacturing unit to reduce debt, have slumped nearly 80%
so far this year.
(Reporting by Manojna Maddipatla in Bengaluru; Editing by Sriraj
Kalluvila)
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