Mylan to pay for EpiPen overcharges
MYLAN will pay US$465 million to resolve accusations from some regulators that it overbilled the federal Medicaid program for the EpiPen allergy medication.
The settlement with the US Department of Justice and some other regulators resolves questions about Mylan’s classification of EpiPen as a generic drug, the drugmaker said. Mylan said it did not admit fault in the agreement.
Federal health regulators have said the misclassification contributed to a swelling of payments to Mylan, which nearly monopolises the market for the allergy injectors, for EpiPen under federal health care programs.
Had EpiPen been correctly classified, Mylan would have been forced to pay higher rebates to federal and state officials, officials with the US Center for Medicare and Medicaid Services (CMS) have said.
Mylan, which has been under strong attack from politicians and the public for jacking up the price of EpiPens – essential for severe allergy sufferers to block life-threatening attacks – touted the settlement.
Despite news of the settlement, Mylan alluded to a fresh federal investigation in an SEC filing, saying it had received a document request from enforcement officials “seeking communications with the CMS and documents concerning Mylan products sold and related to the Medicaid Drug Rebate Program, and any related complaint”. -