Md. Attorney General Announces Lifesaving Drug Settlement
BALTIMORE (WJZ)-- Wednesday, Maryland's attorney general announced the deal against a drug company accused of monopolizing a lifesaving medication charging thousands for it.
George Solis explains how the settlement could impact the prices of other important medications in the future.
Maryland Attorney General Brian Frosh told WJZ the $100 million settlement sends a clear message to drug companies trying to essentially jack up their prices by eliminating their competition, simply won't be tolerated.
Maryland joined four other states along with the Federal Trade Commission in a victory in a growing battle against prescription price gouging.
Frosh sat down with WJZ to discuss the details of a $100 million settlement against Mallinckrodt Pharmaceuticals.
The company that was accused in the lawsuit of monopolizing the market by getting a hold of the rights to their only competition. The generic form of their drug Acthar is used to treat a number of life-threatening diseases like infantile spasms and multiple sclerosis.
"As a result they jacked the prices up," said Frosh.
From $40 to more than $34,000 per vial, an 85,000 percent increase. Part of the initial lawsuit alleges the drug company far outbid three others as a way to protect their monopoly.
One of those drug companies was found by none other than Martin Shkreli who gained notoriety for another price hike on another drug.
Congressman Elijah Cummings addressed the founder on Capitol Hill last year: "It's not funny Mr. Shkreli, people are dying, people are getting sicker and sicker."
Frosh says their investigation into Mallinckrodt began shortly thereafter.
"We're fighting it on a number of different fronts," said Frosh.
As part of the settlement the company will have to give the generic form of their drug to another pharmaceutical company so that it can be developed to compete with Acthar.
In a statement the company says they are pleased with the agreement but "strongly disagree with allegations." Frosh told WJZ part of the plan to fight prescription price gouging is by introducing new legislation to prevent it in the first place.
The company say it will pay out that $100 million in the coming weeks, and some of that money will be coming back to Maryland.
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