On August 17, Mylan and federal investigators finalized a US$465 million settlement of charges the drugmaker overcharged the government for the injection allergy medication EpiPen.
Resolving an issue that fueled nationwide debate over soaring drug costs, the agreement ends an investigation that found Mylan avoided paying state Medicaid programs higher EpiPen rebates by improperly catagorizing the brand name drug as a generic medication.
The drugmaker raised EpiPen prices by roughly 400% between 2010 and 2016, according to federal investigators. EpiPen is a disposable, prefilled injector that administers epinephrine to counteract severe allergic reactions.
Mylan, which disclosed the settlement’s size last October, said the agreement resolves all potential Medicaid rebate liability claims by the federal government, along with potential claims by certain hospitals. The deal also allocates funds to Medicaid programs in all 50 states.
Mylan agreed to a five-year monitoring program of its Medicaid compliance, and also said it would pay the higher rebate on EpiPens as of April 1, 2017.
Full Content: Reuters
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