$465 million settlement OK’d in EpiPen case
Mylan and federal investigators on Thursday finalized a $465 million settlement of charges that the drugmaker overcharged the government for the injection allergy medication EpiPen.
Resolving an issue that fueled nationwide debate about soaring drug costs, the agreement ends an investigation that found Mylan avoided paying state Medicaid programs higher EpiPen rebates by improperly classifying the brand-name drug as a generic medication.
The drugmaker raised EpiPen prices by roughly 400 percent between 2010 and 2016, according to federal investigators. EpiPen is a disposable, pre-filled injector that administers epinephrine to counteract severe allergic reactions.
“Mylan misclassified its brand-name drug, EpiPen, to profit at the expense of the Medicaid program,” said William Weinreb, the acting U.S. attorney for the District of Massachusetts.
Mylan, which disclosed the settlement’s size last October, said the agreement resolves all potential Medicaid rebate liability claims by the federal government.