Epipen provider reaches settlement of $465 million

Mike Finnegan

Following harsh criticisms by the public and governmental agencies, Mylan, the pharmaceutical provider of EpiPen, has agreed to a settlement with the Department of Justice and several other agencies totaling $465 million.

The company stated last Friday that it has committed no wrongdoing.

Mylan adjusted its expected earning per share to drop 15 cents to a lower range of $4.90 to $4.70. Following this adjustment, the company’s stock gained 11 percent.

The DOJ argued that Mylan incorrectly classified its allergy treatment medication, EpiPen, as a generic drug, when in fact it should have been a brand name drug. As a result, Mylan was able to charge Medicaid 10.1 percent more for every EpiPen sold. While Mylan stated that EpiPen has only been classified as a generic drug since 2007, other reports suggest the drug has technically been generic since 1997.

The Kaiser Foundation, a health policy research non-profit organization, found that regardless of any technicalities with EpiPen’s classification, the price of the drug has skyrocketed in recent years. In 2011, each EpiPen was being sold to Medicare at an average cost of $137. In 2015, the average cost was $447, a 227 
percent increase in four years.

In a Friday statement, Mylan announced the Securities and Exchange Commission would be investigating the company.