Mallinckrodt Plc claims its research into a COVID-19 treatment would be hurt by allowing the U.S. government to extract “crippling penalties” from the drugmaker for underpaying rebates owed to state Medicaid programs after it hiked a drug’s price.
The company made that claim in a motion filed on Monday in federal court in Washington, D.C., seeking to enjoin the government from taking action against it while it appeals a ruling that would force it to pay $650 million to cover retroactive rebates for the drug, H.P. Acthar Gel.
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