Feb. 21, 2017
Recently, several articles have appeared that draw a number of erroneous conclusions about Mallinckrodt Pharmaceuticals and its product H.P. Acthar Gel based on misinformation and a variety of distorted and conflated facts. Mallinckrodt disagrees with these views and offers the following basic, but important facts about this critical medicine.
Body of Evidence
H.P. Acthar Gel makes a significant difference in the lives  of very sick patients with unmet medical needs. The U.S. Food and Drug  Administration (FDA) reviewed the label in 2010, and determined there in fact  was sufficient scientific and clinical evidence to support the 19 indications  now in the current label. In most indications, H.P. Acthar Gel is a later line  treatment, prescribed by skilled healthcare providers to a small subset of patients  who need an alternative treatment option. H.P. Acthar Gel is a first line  monotherapy treatment for infantile spasms (IS). The effectiveness of the drug as  an IS treatment is supported by two randomized clinical trials, one of which compared H.P. Acthar Gel to prednisone, and is reflected in the IS clinical trial results that appear in Section 14 of the full prescribing information for the drug. A representative sampling of articles citing the clinical experience of  H.P. Acthar Gel follow referencing treatment of patients for multiple sclerosis  relapse and to induce a remission of proteinuria in nephrotic syndrome: 
Substantial additional evidence exists, including company-sponsored controlled clinical trials, investigator-initiated research conducted in top hospitals and medical centers by some of the country’s preeminent physicians, and health economic and outcomes research (HEOR) data. A bibliography referencing hundreds of studies related to H.P. Acthar Gel can be found on the company’s website, and press releases specific to company-sponsored trials for the product can also be found in the news section of the site. Equally important are the more than 50 years of clinical experience physicians have with the product as a demonstrated therapy for appropriate patients.
Mallinckrodt Investment
As the company has stated consistently, Mallinckrodt’s goal  has been - and continues to be - to acquire under-resourced, under-utilized  products like H.P. Acthar Gel that are used in areas of high unmet medical need,  typically in narrow patient populations, and then invest significantly in those  products. The company invests by building an even larger body of evidence to  demonstrate which patients can benefit most from the drug and shares that  information with physicians and payers to ensure those patients can get access  to the product. This strategy has been very successful, and in the roughly 2.5  years it has owned the product, Mallinckrodt has expanded the number of  commercial lives under contract from zero to nearly 60%.
In that same period, Mallinckrodt has initiated three company-sponsored Phase 4 clinical trials for H.P. Acthar Gel (rheumatoid arthritis, systemic lupus erythematosus and focal segmental glomerulosclerosis). The company also announced a Phase 2 proof-of-concept trial to study the efficacy of the drug in amyotrophic lateral sclerosis, often called Lou Gehrig’s disease, for which there are very few effective treatment options available at present. All told, more than 800 patients will be enrolled in these company-sponsored, randomized controlled clinical trials to study H.P. Acthar Gel. Multiple sclerosis studies are also underway or nearing initiation, with studies for other indications under consideration.
These investments, plus manufacturing modernization, investing in safety stocks to ensure maximal product supply, other medical affairs and research activities, and HEOR studies bring the total investment in H.P. Acthar Gel to more than a quarter of a billion dollars since acquiring the product.
Reimbursement
Specific to reimbursement, coverage gains among commercial  payers has resulted in the overall payer mix for H.P. Acthar Gel between  private and public plans becoming - and staying - relatively stable, and Mallinckrodt  is seeing volume growth across both publicly and privately insured patients. Medicare  patients represent a slightly higher percentage of overall patients simply because  presentation of expanding data sets to healthcare practitioners over time has resulted  in increased usage in aging patient populations, particularly in the  rheumatology and pulmonology spaces, where Medicare coverage is more likely to  be utilized. The per-patient cost of Acthar in Medicare reflects the relatively  small numbers of patients being treated with the drug - consistent with its use  for only the hard-to-treat patients for whom other alternatives have been  ineffective or are no longer tolerated. 
In the commercial reimbursement space, the majority of payers have an established pathway for the use of H.P. Acthar Gel in those patients for whom it is appropriately prescribed - those with conditions covered by the FDA-approved label and for whom the product’s extensive existing data and clinical experience support Acthar’s use as a proven therapy. The prior-authorization and reimbursement processes used by commercial payers rely on these criteria.
Summary
Mallinckrodt strongly believes in the product’s efficacy in  its approved indications and will continue significant investment for H.P.  Acthar Gel to ensure those patients who can benefit from the therapy have  access to it. 
About H.P. Acthar® Gel (repository corticotropin injection) 
  H.P. Acthar Gel is an injectable drug approved by the FDA for the treatment of  19 indications. Of these, today the majority of Acthar use is in these  indications:  
For more information about Acthar, please visit www.acthar.com. Full Prescribing Information may be accessed here.
Important Safety Information
Please see full Prescribing Information here for additional Important Safety Information.
ABOUT MALLINCKRODT
Mallinckrodt is a global business that develops,  manufactures, markets and distributes specialty pharmaceutical products and  therapies. Areas of focus include autoimmune and rare diseases in specialty  areas like neurology, rheumatology, nephrology, pulmonology and ophthalmology;  immunotherapy and neonatal respiratory critical care therapies; and analgesics  and hemostasis products. The company's core strengths include the acquisition  and management of highly regulated raw materials and specialized chemistry,  formulation and manufacturing capabilities. The company's Specialty Brands  segment includes branded medicines and its Specialty Generics segment includes  specialty generic drugs, active pharmaceutical ingredients and external  manufacturing. To learn more about Mallinckrodt, visit www.mallinckrodt.com.
Mallinckrodt uses its website as a channel of distribution of important company information, such as press releases, investor presentations and other financial information. It also uses its website to expedite public access to time-critical information regarding the company in advance of or in lieu of distributing a press release or a filing with the U.S. Securities and Exchange Commission (SEC) disclosing the same information. Therefore, investors should look to the Investor Relations page of the website for important and time-critical information. Visitors to the website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Investor Relations page of the website.
CONTACTS
  Investor Relations
  Coleman N. Lannum, CFA
  Senior Vice President, Investor Strategy and IRO
  314-654-6649
  cole.lannum@mallinckrodt.com
Daniel J. Speciale, CPA
  Director, Investor Relations
  314-654-3638
  daniel.speciale@mallinckrodt.com
Media
  Rhonda Sciarra
  Senior Communications Manager
  908-238-6765
  rhonda.sciarra@mallinckrodt.com
Meredith Fischer
  Chief Public Affairs Officer
  314-654-3318
  meredith.fischer@mallinckrodt.com