Mylan overcharged for EpiPen by $1.7 billion, new report says

pharmafile | June 1, 2017 | News story | Sales and Marketing Mylan, epipen 

More bad news for Mylan as a new report from the Department of Health and Human Services’ Office of the Inspector General claims it has found that the company may have overcharged taxpayers to the tune of $1.7 billion over the last ten years for its EpiPen epinephrine auto-injector.

The report alledges that Mylan intentionally misclassified its Epipen as a generic producta as opposed to a branded one in a move to manipulate the Medicaid insurance programme and avoid offering the sizeable discounts required of branded medications under its terms. The drug maker was found guilty of this misclassification back in October during the height of last year’s EpiPen pricing scandal and was ordered to pay $465 million.

Senator Charles Grassley, who leads the Senate Committee on the Judiciary, originally posted a copy of the report, and has been vocal in his criticisms of the company. Grassley has voiced disapproval on the small scale of penalty fines ordered, and has called for an explanation as to why the Centers for Medicare and Medicaid Services (CMS) allowed Mylan’s product to be misclassified in this way. According to Grassley, the CMS brought the issue to Mylan, who has thus far failed to rectify the situation by supplying requested documentation.

“As part of drug costs, we have to make sure companies that take part in federal health care programs aren’t gaming the system,” Grassley explained, placing responsibility on US congress to ensure taxpayers “don’t overpay for EpiPens or any other drugs in public health-care programmes.”

Mylan responded via spokeswoman Nina Devlin, who stated “we continue to work with the government to finalise the settlement as soon as possible.”

News of the report comes just days after it was made known that Mylan investors are attempting to block the re-election of board members at the company over what they consider to be exorbitant pay packets for its executives; among them, Chairman and former CEO Robert Coury took home $100 million in 2016.

Matt Fellows

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