City of Rockford files federal lawsuit against pharmaceutical company

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ROCKFORD, Ill. (WIFR) – The City of Rockford has filed a lawsuit against a pharmaceutical company they say has cost Rockford nearly $500,000 in inflated drug payments.

The company, Mallinckrodt, manufactures a drug called Acthar which is used to treat infantile spasms infants and children under two years old. According to the City, Acthar is currently the only FDA approved drug found to be successful in treating the life-threatening seizures or spasms. Mayor Morrissey said in a press conference Thursday that two city employees have children that depend on Acthar and the city paid nearly half a million dollars for treatments in 2015.

The Mayor says in 2001 the drug was being sold for $40 a vial and now the price has gone up to $35,000 per vial, an 85,000% price increase. The City believes Mallinckrodt has a monopoly on the drug and is abusing its monopolistic powers.

The lawsuit charges Mallinckrodt with violations of the federal antitrust laws and the Illinois Consumer Fraud and Deceptive Practices Act.