EpiPen maker agrees to $465M set­tle­ment

Baltimore Sun - - NEWS - By Linda A. Johnson

edly over­charg­ing the gov­ern­ment for its medicines.

“DOJ is let­ting My­lan get TREN­TON, N. J. — off on the cheap for rip­ping EpiPen maker My­lan has off the gov­ern­ment, and fi­nal­ized a $465 mil­lion with no ad­mis­sion of gov­ern­ment agree­ment setwrong­do­ing,” Robert tling al­le­ga­tions it overWeiss­man, pres­i­dent of the billed Med­i­caid for its emer­con­sumer watch­dog group gency al­lergy in­jec­tors for a Pub­lic Cit­i­zen, said Thurs­day.decade—charges­brought af­ter ri­val Sanofi filed a Weiss­man and Sen­ate Juwhistle­blower law­suit and di­ciary Com­mit­tee Chair­tipped off the gov­ern­ment. man Chuck Grass­ley, R

It’s the sec­ond set­tle­ment Iowa, both noted that the with the Depart­ment of Health and Hu­man ServJus­tice that My­lan has ices Depart­ment’s Of­fice of made since 2009 for al­leg- In­spec­tor Gen­eral’s in­vesti- gated and con­cluded that Med­i­caid pro­grams paid My­lan $1.27 bil­lion more than they should have be­tween 2006 and 2016.

My­lan NV, based in Eng­land but with op­er­a­tional head­quar­ters near Pitts­burgh, be­came a poster child for phar­ma­ceu­ti­cal in­dus­try greed af­ter hik­ing the price of EpiPens re­peat­edly. It raised the price per pair from $94 in 2007 to $608 last year. Ex­perts es­ti­mate it costs less than $10 to pro­duce one EpiPen.

Last Septem­ber, a House panel grilled My­lan CEO Heather Bresch about the sky­rock­et­ing cost of the de­vices, which pa­tients in­ject in the thigh to stop a run­away al­ler­gic re­ac­tion to foods such as nuts and eggs or in­sect bites and stings.

OnThurs­day, the Depart­ment of Jus­tice dis­closed that its EpiPen case be­gan when Sanofi-Aven­tis US LLC filed a law­suit against My­lan un­der the False Claims Act.

The law al­lows in­di­vid­u­als and com­pa­nies to sue on be­half of the gov­ern­ment A set­tle­ment fol­lows $1.27 bil­lion in Med­i­caid over­charges. over im­proper charges to gov­ern­ment pro­grams and to re­ceive a share of any money re­cov­ered. Sanofi is to re­ceive $38.7 mil­lion. The fed­eral gov­ern­ment and all 50 states will split the bulk of the set­tle­ment.

MARK ZALESKI/AP

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