Mylan, DOJ settle EpiPen lawsuit for $465 million

Mylan, maker of the EpiPen emergency allergy treatment, finalized a $465 million settlement with the U.S. Justice Department to resolve a year-long over EpiPen's price, the U.S. Attorney's Office in Massachusetts announced Thursday.
By Kara Menard | Aug 22, 2017
Mylan, maker of the EpiPen emergency allergy treatment, finalized a $465 million settlement with the U.S. Justice Department to resolve a year-long over EpiPen's price, the U.S. Attorney's Office in Massachusetts announced Thursday. The Justice Department had previously filed a lawsuit accusing Mylan of overcharging the government for the allergy treatment.
This is the same EpiPen that was the subject of intense controversy last year when the price suddenly rose from $100 to $600. Mylan has since then offered a generic version for $300.
According to Justice Department lawyers, Mylan initially classified the EpiPen as a generic product, even though the company was marketing and pricing it as a brand-name one. The generic designation would have let the company avoid paying higher rebates to state Medicaid programs for EpiPens.

Sanofi, a rival pharmaceutical, alerted the Justice Department to the generic-classification issue and filed a False Claims Act against Mylan in 2016. In October, Mylan said that it had just reached a settlement deal with the Justice Department. Under the now-finalized settlement, Mylan will not have to admit to any wrongdoing but will reclassify its product as a brand-name one and pay the rebate applicable to the re-classification from April 1, 2017, and on.
"Taxpayers rightly expect companies like Mylan that receive payments from taxpayer-funded programs to scrupulously follow the rules," Acting U.S. Attorney William Weinreb said in a statement.
But several congressional representatives protested that this settlement was too easy on Mylan. A U.S. Department of Health and Human Services report released in May, however, noted that the price discrepancy dates back to 2006 and concluded that the federal government may have overpaid for EpiPens from 2006 to 2016 by as much as $1.27 billion

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