Mallinckrodt Statement On Agreement To Settle Questcor Shareholder Lawsuit
DUBLIN – April 13, 2015 – Mallinckrodt Pharmaceuticals (NYSE: MNK) said today it had reached preliminary agreement to settle a shareholder lawsuit related to Questcor Pharmaceuticals, Inc., which was acquired by Mallinckrodt in August 2014. The settlement amount of approximately $38 million is subject to final approval by the United States District Court for the Central District of California. The settlement will resolve a class action lawsuit brought against Questcor alleging misstatements from former company officers and directors related to H.P Acthar® Gel.
In settling the lawsuit, Peter Edwards, Mallinckrodt’s Senior Vice President and General Counsel, said,
“Without admitting to any fault, this settlement will eliminate the uncertainty, distraction and expense of continued litigation of this legacy matter.”
Acthar has been approved by the U.S. FDA for the treatment of 19 different complex diseases and conditions, and Mallinckrodt believes that it has and will continue to have high value for certain patients suffering from a variety of devastating illnesses. Typically prescribed by physicians who have experience with the product and its efficacy, Acthar is often used only after patients have been on a variety of other therapies for years and other treatments are no longer working or when the patient is having problems tolerating his or her current treatment. There is data and extensive clinical experience supporting the efficacy of Acthar in these situations. Furthermore, the drug has been, and continues to be, investigated in clinical trials by some of the most respected physicians in their respective fields.
Mallinckrodt has filed a Form 8-K relating to the settlement with the Securities and Exchange Commission.
Mallinckrodt is a global specialty biopharmaceutical and medical imaging business that develops, manufactures, markets and distributes specialty pharmaceutical products and medical imaging agents. Areas of focus include therapeutic drugs for autoimmune and rare disease specialty areas like neurology, rheumatology, nephrology and pulmonology along with analgesics and central nervous system drugs for prescribing by office- and hospital-based physicians. The company's core strengths include the acquisition and management of highly regulated raw materials; deep regulatory expertise; and specialized chemistry, formulation and manufacturing capabilities. The company's Specialty Brands segment includes branded medicines; its Specialty Generics segment includes specialty generic drugs, active pharmaceutical ingredients and external manufacturing; and the Global Medical Imaging segment includes contrast media and nuclear imaging agents. Mallinckrodt has approximately 5,500 employees worldwide and a commercial presence in roughly 65 countries. The company's fiscal 2014 revenue totaled $2.54 billion. To learn more about Mallinckrodt, visit www.mallinckrodt.com.
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