In a heated exchange on CNBC, Andrew Left, a short seller, founder and executive editor of Citron Research, took on Mallinckrodt's CEO, Mark Trudeau, about the value of his pharmaceutical company and how it differs from Valeant.
Left, who called the decline in Valeant [$264 to $28], said Mallinckrodt makes Valeant look like a "choirboy" by comparison. He said that the company's drug Acthar, which is used to treat seizures in babies, is the "poster child" of price gouging.
Skeptics have focused on Mallinckrodt's acquisition of Questcor in August 2014, which makes Acthar, which is a drug whose pricing was raised from $40 to more than $28,000 a vial over a decade. Left offers one million dollars for a proof that the Acthar works... It doesn't.
Shares of the Dublin-based Mallinckrodt are down more than 50 percent.
Trudeau noted that Acthar represents less than one-third of the company's business, and it's growing at about 8 percent per year.
Shame, Shame, Shame on the legislators who know how to eliminate the rippoff and look the other way. Just a thought.
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