Mallinckrodt drops out of PhRMA

Mallinckrodt Pharmaceuticals withdrew its membership from the Pharmaceutical Research and Manufacturers of America, an influential drug lobby group, reports Business Insider.

Mallinckrodt left the group in advance of potential changes to PhRMA's bylaws that would require drugmakers to spend a significant amount of money on research and development, according to The Wall Street Journal.

The bylaw changes highlight PhRMA's efforts to boost the drug industry's reputation and highlight its focus on innovation, following several years of criticism on high drug prices.

Mallinckrodt, which has faced scrutiny for price hikes on its older drug Acthar, joined the lobby group in 2015. Upon joining, the drugmaker said its membership "points to the commitment Mallinckrodt has made to supporting public policies that support patient access to needed drug treatments," according to the report.

A PhRMA spokeswoman did not provide further details about the exit.

“Mallinckrodt routinely evaluates its engagement in trade associations and policy organizations and has concluded that the significant financial and time commitment required as a full PhRMA member outweighs its direct policy value to us at this time, given our present size and staff footprint," a Mallinckrodt spokesperson said. "We continue to subscribe to the PhRMA Code of Conduct, support many of the group's positions and initiatives and look forward to continuing our positive working relationship with PhRMA and its members.”

Editor's note: This article was updated on April 6 to include an official statement from Mallinckrodt.

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