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Acthar over cheaper alternatives is being questioned by an Oregon State University study. The drug is prescribed by a small number of doctors, and many of them received speaker fees from Mallinckrodt. Mallinckrodt depends on Medicare for nearly half of Acthar sales, raising a risk for investors. President Donald Trump has proposed allowing Medicare to negotiate prices. Mallinckrodt is conducting studies to demonstrate Acthar’s effectiveness. Tell me if this makes sense to you. 38,000 non-lifesaving drug with a wide range of cheaper alternatives, making it one of the top 20 expenses for Medicare Part D, a prescription drug program. Acthar, and it is a blockbuster for Mallinckrodt Pharmaceuticals, the company that acquired it in 2014.

But it is also old enough that it never androgel testosterone gel price through the clinical trials the government requires of a new drug today. What caught the attention of researchers at Oregon State was how much more expensive the government-subsidized Acthar was than some of its competitors — sometimes tens of thousands of dollars more. The researchers wanted to know why such a small number of doctors had come to prescribe such a costly drug to sick adults. Those critics include short sellers who are profiting as Mallinckrodt’s shares get crushed. There are some explanations for why the prescriptions could be concentrated among a small number of doctors. The researchers who looked into it don’t find this or other explanations convincing justifications for the expense to the government. The study into Acthar prescriptions was conducted by Dennis Bourdette, the chair of neurology in the Oregon Health and Science University School of Medicine, and Daniel Hartung, an associate professor in OSU’s College of Pharmacy.