Mallinckrodt exits pharma trade group ahead of changes

|About: Mallinckrodt PLC (MNK)|By:, SA News Editor

The Pharmaceuticals Research and Manufacturers Association is mulling bylaw changes which could exclude companies not spending enough money on research and development of new drugs. A vote is scheduled for early May.

Ahead of maybe getting booted out, Mallinckrodt (MNK +1.5%) decided to resign from the group, writes Joseph Walker in the WSJ.

The proposed changes at PhRMA suggests members - including the likes of Pfizer and Merck - are trying to break their association with the likes of companies like Mallinckrodt whose strategy is to acquire drugs developed elsewhere and then boost prices.

PhRMA spent nearly $20M in D.C. lobbying efforts last year.