Mylan Paying $465 Million to Resolve EpiPen Claims

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The Justice Department says that Mylan has agreed to pay $465 million to resolve False Claims Act allegations that it knowingly misclassified EpiPen as a generic drug to avoid paying rebates owed primarily to Medicaid. A department news release says Sanofi-Aventis filed a whistleblower suit alleging the EpiPen misclassification and will receive about $38.7 million as its share of the federal recovery.

The government says that by erroneously reporting EpiPen as a generic drug to Medicaid despite the absence of any therapeutically equivalent drugs, Mylan was able to demand massive price increases in the private market while avoiding its corresponding rebate obligations to Medicaid. Between 2010 and 2016, the government says, Mylan increased the EpiPen price by some 400% and yet paid only a fixed 13% rebate to Medicaid in the same period.

Mylan has also signed a corporate integrity agreement with the HHS Inspector General that requires, among other things, an independent review organization to annually review multiple aspects of the company’s practices relating to the Medicaid drug rebate program.

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