EpiPen firm to pay $465M in ripoff

ALBANY — Pharmaceutical giant Mylan has agreed to pay $465 million to settle claims it shortchanged the federal government and multiple states on rebates for its lifesaving EpiPens.

New York will receive $38.5 million under the settlement announced Thursday, state Attorney General Eric Schneiderman said. The agreement followed a joint investigation by the federal government and several states, including New York, that revealed Mylan had misclassified EpiPen as a generic drug to avoid paying rebates to Medicaid.

“For nearly seven years, Mylan prioritized its bottom line — and shortchanged the Medicaid program and taxpayers,” Schneiderman said. “By misclassifying EpiPen, Mylan attempted to sidestep their obligations, leaving taxpayers to foot the bill.”

Mylan acquired the rights to EpiPen in 2007, The Associated Press reported. 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.

Under the Medicaid Drug Rebate Statute, drug manufacturers such as Mylan must agree to pay rebates to the federal government and the states as a precondition for obtaining Medicaid coverage for their “innovator” drugs, Schneiderman said.

In a statement, the drug company noted the settlement “does not contain an admission or finding of wrongdoing.”

“Bringing closure to this matter is the right course of action for Mylan and our stakeholders to allow us to move forward,” company CEO Heather Bresch said.