Coalition, local unions ask to have a seat at Mallinckrodt table

Chicago, Oct. 21 – In the wake of Mallinckrodt plc’s bankruptcy filing on Oct. 13, the Delaware Valley Health Care Coalition, Inc. is working to have a seat at the table of the bankruptcy proceedings of the pharmaceutical giant.

Three of DVHCC’s members have sued the company for their pricing scheme of the drug H.P. Acthar Gel. A vial of the drug today costs $46,000 per vial versus $40 per vial in 2001.

The coalition is a non-profit voluntary association made up of multi-employer trust funds, governmental entities, labor unions, schools and school districts in over 14 states and the District of Columbia.

The Steamfitters Local 420, the Operating Engineers Local 541 and the Plumbers Local 322 are three of the groups in the coalition who have sued the company.

The DVHCC claims they are owed hundreds of millions of dollars.

The Mallinckrodt bankruptcy put a stay on the current lawsuits and was deemed an effort to avoid liability for its pricing schemes.

Henry Donner, DVHCC counsel said, “We are asking the bankruptcy trustee to include a representative from our litigation on the bankruptcy committee – which will decide, among other things, how unsecured creditors are paid.”

Dublin-based Mallinckrodt develops, manufactures, markets and distributes specialty pharmaceutical products and therapies. The Chapter 11 case number is 20-12522, filed on Oct. 13.

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