ALIVE: Lawsuit: Drug company ups drug price from $40 to $39,000

By Doug Richards

he city of Marietta is suing a drug maker for charging $39,000 for a drug that used to cost $40. The city says the drugmaker, Mallinckrodt, is gouging the city – as well as other patients and health care providers.

This is a dispute over a drug that has been around for nearly 70 years – a vial of which is now about as expensive than a new Tesla.

The city of Marietta has about 700 employees in its insurance benefits program and another 300 retirees.

According to a lawsuit filed by the city of Marietta against Mallinckrodt, the price has skyrocketed. In 2001, a vial of it cost $40. Now, the price of a vial is more than $39,000. The suit measures that as an increase of 97,000 percent.

The lawsuit says Marietta has one patient in its insurance plan that requires Acthar, an injectable drug that helps patients with multiple sclerosis, infant seizures and other disorders. The suit says the city’s insurance plan has “expended over $2 million for Acthar for just one patient.”

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