Price-hiked EpiPen profits 66% higher than Mylan CEO claimed

pharmafile | September 27, 2016 | News story | Business Services, Manufacturing and Production, Sales and Marketing Heather Bresch, Mylan, epipen 

In the latest development in the Mylan EpiPen scandal, it has been discovered that CEO Heather Bresch lied to US lawmakers during her testimony to the House Oversight and Government Reform Committee last week regarding the profitability of the company’s flagship product.

Bresch (pictured) previously claimed that Mylan made only $50 profit on each EpiPen, the company’s epinephrine auto-injector which is making headlines thanks to its consumer cost ballooning by over 500% since 2007. The actual profit has been found to be $83 per pen, 66% higher than Bresch claimed.

Mylan conceded the error in a regulatory filing, claiming Bresch’s mistake was due to her inclusion of a 37.5% tax rate; a standard procedure for analysing profitability, the company claimed. However, Mylan had only a 7.4% corporate tax rate last year with a negative effective tax rate in the US.

Mylan acquired the product in 2007 and has since increased its price to over $600 for a twin-pack. The EpiPen now controls over 90% of the market.

Matt Fellows

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