Mylan To Pay $465M To Settle Allegations It Overcharged Medicaid
The allegations centered around the rebates the EpiPen-maker offered the government. The makers of generic drugs pay rebates of 13 percent, but manufacturers of brand-name drugs must offer discounts of about 23 percent.
The New York Times:
Mylan To Settle EpiPen Overpricing Case For $465 Million
Mylan, the maker of the allergy treatment EpiPen, said Friday that it had reached a $465 million settlement with the Justice Department and other government agencies over questions on whether the company had overcharged Medicaid for the treatment by improperly classifying it as a generic drug. The federal government said this week that Mylan had been told multiple times that it was wrongly classifying the EpiPen, which led the Medicaid and Medicare programs to overpay for the product. (Thomas, 10/7)
Stat:
Mylan To Pay $465 Million To Settle Claims Of Shortchanging Medicaid
Mylan reached a $465 million settlement on Friday with the US Department of Justice and other government agencies over accusations that it shortchanged Medicaid. The move comes after a month of controversy over charges that Mylan improperly classified its EpiPen allergy device in reports to the Medicaid Drug Rebate Program. Under this program, companies must accurately report — and pay — a rebate on drugs paid for by the agency. (Silverman, 10/7)
NPR:
EpiPen-Maker Mylan Settles For $465 Million In Medicaid Dispute
Drugmaker Mylan N.V. announced Friday that it had reached a $465 million settlement with the U.S. Justice Department and other government agencies to resolve questions over rebates required by the Medicaid program. The deal settles allegations by the Centers for Medicare and Medicaid Services that Mylan had misclassified the EpiPen as a generic drug and had not paid the appropriate rebates that are required by law. (Kodjak, 10/7)
Bloomberg:
Mylan Jumps In Early Trading On $465 Million EpiPen Settlement
Mylan NV shares advanced 12 percent in early U.S. trading after the company said it will pay the U.S. government $465 million in a swift settlement over how the drugmaker charged Medicaid for its allergy shot EpiPen. The stock climbed to $40.10 in premarket trading in New York, after closing last week at $35.94, the lowest in more than three years. The accord offers a reprieve to investors concerned that the penalty could have been significantly larger, while resolving part of the controversy over Mylan’s price increases on EpiPen. (Tracer, 10/10)
Modern Healthcare:
Mylan To Pay $465 Million Settlement Over EpiPen Medicaid Rebates
Mylan, the embattled maker of the EpiPen, has agreed to pay the U.S. Department of Justice $465 million to settle allegations that it overbilled Medicaid for the life-saving allergy medication. The settlement, announced by the British drugmaker on Friday, is yet another mark against the company after significant backlash over EpiPen pricing. Mylan, which was been accused by legislators and regulators of misclassifying the brandname EpiPen as a generic, says the settlement “will resolve questions raised about the classification” of the EpiPen under the program. (Rubenfire, 10/7)
