Mylan Pays $465 Million to Settle EpiPen Rebate Questions

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Mylan has agreed to the terms of a $465 million settlement with the U.S. Department of Justice and other government agencies to resolve questions that have been raised about the classification of EpiPen Auto-Injector and EpiPen Jr. Auto-Injector under the Medicaid Drug Rebate Program. “The terms of the settlement do not provide for any finding of wrongdoing on the part of Mylan Inc. or any of its affiliated entities or personnel,” the company says. “The question in the underlying matter was whether EpiPen Auto-Injector was properly classified with the Centers for Medicaid and Medicare Services (CMS) as a non-innovator drug under the applicable definition in the Medicaid Rebate statute and subject to the formula that is used to calculate rebates to Medicaid for such drugs. EpiPen Auto-Injector has been classified with CMS as a non-innovator drug since before Mylan acquired the product in 2007 based on longstanding written guidance from the federal government.”

The settlement terms cover all potential rebate liability claims by federal and state governments as to whether the product should have been classified as an innovator drug for CMS purposes and subject to a higher rebate formula, Mylan says. “In connection with the settlement, Mylan expects to enter into a corporate integrity agreement with the Office of Inspector General of the Department of Health and Human Services,” it adds.

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