Mylan To Pay $30M To Settle SEC Probe Related To EpiPen Pricing Case Disclosure
The drugmaker allegedly failed to disclose to the Security and Exchange Commission a possible loss related to a previous Department of Justice investigation over whether the company overcharged for its EpiPen, an allergy treatment.
Stat:
Mylan Pays $30 Million To Settle Charges Of Misleading Investors Over Probe Into EpiPen Medicaid Rebates
In the latest fallout from the EpiPen pricing scandal, Mylan agreed to pay $30 million to settle charges by the Securities and Exchange Commission for failing to disclose to investors a Department of Justice probe into allegations of overcharging Medicaid for the allergy-relief device. The settlement, which the company had indicated last July was being finalized, comes two years after the company paid $465 million for shortchanging the government health care program. At the time, the Justice Department had been investigating Mylan for knowingly classifying EpiPen as a generic product for nearly a decade in order to avoid paying the appropriate rebates owed to Medicaid. (Silverman, 9/27)
The Wall Street Journal:
Mylan Settles SEC Suit For $30 Million
Prosecutors had accused the company of wrongly classifying the EpiPen, its best known product used for treating allergic reactions, as a generic product, when it should have been considered a brand product. The generic classification allowed Mylan to pay a smaller rebate on EpiPen sales to Medicaid programs, regulators said. Drugmakers are required by law to pay rebates for sales to patients insured by Medicaid, which is funded jointly by states and the federal government. (Thomas, 9/27)
Bloomberg:
Mylan Misled Investors Over EpiPen Pricing Probe, SEC Says
Mylan NV misled investors for at least a year about a Justice Department investigation into the allergy shot EpiPen that would eventually cost the company nearly $500 million, the U.S. Securities and Exchange Commission said Friday. The settlement appears to close one part of a long-running saga over a product that boosted Mylan’s sales but also brought controversy. Under the agreement with the SEC, first disclosed as a settlement in principle by Mylan in July, the drugmaker will pay $30 million. (Griffin and Robinson, 9/27)
The Associated Press:
Mylan Agrees To Pay $30M In SEC EpiPen Settlement
Mylan has agreed to pay $30 million in a settlement tied to its failure to tell investors about a Justice Department investigation into whether the company overcharged Medicaid for the EpiPen. The Securities and Exchange Commission said Friday that Mylan NV classified the EpiPen as a “generic” drug under the Medicaid drug rebate program. This led to the pharmaceutical company paying much lower rebates to the government than if the EpiPen had been classified as a “branded” drug. (9/27)
