Georgia City Sues Alleging 'Unconscionable' Drug Cost

A Georgia city is suing a pharmaceutical company over a medication it says went from $40 to over $39,000. 

Marietta says in its lawsuit against Mallinckrodt ARD LLC that it has spent more than $2 million on the drug Acthar for one patient covered by its self-funded health plan. 

It filed the lawsuit Thursday in federal court in Atlanta.

In a statement, the company said it has invested more than $600 million in the drug since 2014 and offers significant discounts to many customers. Acthar is used to treat a seizure disorder in babies and acute relapses of multiple sclerosis in adults, among other conditions.

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A spokesman for Mallinckrodt told GPB News via email the company has not been served a lawsuit from the city of Marietta. 

He said part of the $600 million investment went toward clinical trials and data generation, manufacturing improvements and other development programs. 

"Additionally, under Mallinckrodt’s stewardship, any price adjustments to Acthar have been limited to the mid-single digit percentage range," the company said. "Mallinckrodt offers significant discounts to many payers and customers, abides by a public pricing pledge, and offers a range of free drug and commercial copay assistance options for patients, in compliance with applicable laws.”

The city of Marietta has declined to comment on the pending litagation.