Irish pharmaceutical company Mallinckrodt Plc. (MNK) filed for chapter 11 bankruptcy protection on October 12 with the U.S. Bankruptcy Court for the District Of Delaware. This filing comes at a time when the company is facing lawsuits alleging that it engineered opioid epidemic in the United States.
Back in March, Mallinckrodt was ordered by the U.S District court of Colombia to pay $650 million for underpaying Medicaid rebates on its game changer drug H.P. Acthar Gel after losing a case seeking to avoid paying higher rebates.
The Medicaid drug rebate program requires Bio tech and pharmaceutical companies to submit quarterly rebates to state Medicaid programs in return for coverage of their drugs.
Under the bankruptcy filing, Mallinckrodt lists its liabilities and assets in the range of $1 billion to $10 billion respectively.
In February the company said it was planning to file for bankruptcy for its generic drug business as part of a tentative $1.6 billion opioid settlement.
The company further said it intends to use the bankruptcy filing to implement a restructuring support agreement which will provide a financial restructuring and an amended proposed opioid claims settlement.