Mylan and New York Feds Reach $465M Settlement Over EpiPen Charges
August 17, 2017 – An investigation into EpiPen manufacturer Mylan Inc. will see that New York gets $38.5 million returned to its coffers.
That’s according to Attorney General Eric Schneiderman, who announced Thursday that New York — which led a coalition of states in an investigation against the Canonsburg, Pennsylvania-based drug company — has agreed to join a state-federal $465 million settlement.
Federal authorities contend Mylan underpaid rebates owed to Medicaid for EpiPen products — an epinephrine auto-injector used to reverse severe allergic reactions — that were dispensed to beneficiaries.
“For nearly seven years, Mylan prioritized its bottom line – and shortchanged the Medicaid program and taxpayers,” Schneiderman said in a statement. “By misclassifying EpiPen, Mylan attempted to sidestep their obligations, leaving taxpayers to foot the bill.”
The bulk of the money will go to Medicaid programs in all 50 states. Mylan, meanwhile, does not admit wrongdoing.
“As we said when we announced the settlement last year, bringing closure to this matter is the right course of action for Mylan and our stakeholders to allow us to move forward,” Mylan CEO Heather Bresch said in a statement.
Bresch drew criticism last year for marking up the price of the EpiPen from roughly $100 for a two-pack to nearly $600 over a nine-year period — all while her compensation rose from $2.4 million to $18.9 million annually.
“Pharmaceutical companies should be warned: efforts to shortchange Medicaid will not be tolerated, and we’ll ensure that these companies are held accountable,” Schneiderman said.
New York Medicaid Fraud Control Unit is led by civil enforcement division chief Carolyn Ellis. She led the multi-state team that negotiated the settlement with Mylan for the states.
By Anthony Noto, New York Business Journal
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