Upon relaunching, the price of the drug skyrocketed from $474.75 to $2,392 per bottle. CEO Mulye defended the price increase, telling the Financial Times that it was a “moral requirement to sell the product at the highest price” in the interest of shareholders. This decision faced widespread criticism, especially given Nostrum’s argument that its rebate agreement applied only to the previous version of the drug, not the reformulated one.
Nostrum Labs Filed For bankruptcy : Bankruptcy Proceedings
Nostrum Laboratories’ case is being handled in the U.S. Bankruptcy Court for the District of New Jersey . The company is represented by attorney David L. Bruck of Greenbaum Rowe Smith & Davis LLP.
The Chapter 11 filing will allow Nostrum to reorganize its finances and potentially address its significant debts while continuing operations. The outcome of the case may affect ongoing settlement obligations and the company’s future in the pharmaceutical industry.
