Mylan may have overcharged United States for EpiPen by $1.27 billion - HHS
- Author: Zachary Reyes Jun 02, 2017,
Jun 02, 2017, 0:28
Mylan said in a statement that Coury's compensation "was granted and earned over his 15-year tenure as CEO and then Executive Chairman or directly relates to his retirement as an executive in 2016 and transition to Non-Executive Chairman".
Mylan for years classified EpiPen, which treats potentially fatal allergic reactions, as a generic product.
Mylan had for years classified EpiPen as a generic drug, which pays Medicaid a lower rate for rebates than is paid by brand-name drugs.
Under Medicaid, makers of brand-name drugs must provide deep discounts on their products.
The Department of Health and Human Services' Office of Inspector General reports that EpiPen's Medicaid misclassification cost taxpayers $1.27 billion from 2006 to 2016, far exceeding the USA government's settlement agreement with the drugmaker. Grassley on Wednesday said Mylan still isn't cooperating with the investigation. The basic rebate amount for a brand-name drug, on the other hand, is based on the greater of two figures: a fixed percentage (currently 23.1%) of the drug's AMP or the difference between the drug's AMP and best price.
Mylan acquired rights to sell EpiPen in 2007, and raised the price by about sixfold before coming under scrutiny previous year for charging $US600 for a two-pack of the life-saving medication.
Previously Mylan said it had agreed to return he $465 million to the government as part of settlement negotiations with the Department of Justice.
The analysis on the EpiPen payments, which was conducted by the Department of Health and Human Services' Office of Inspector General, was released by Republican Senator Chuck Grassley.
Angry investors in medical company Mylan are trying to block the re-election of a number of board members after they received huge payouts past year.
They say huge paychecks were awarded to executives as backlash from consumers and the USA government escalated over prices Mylan charged for its EpiPen emergency allergy treatment. Grassley leads the Senate Committee on the Judiciary.
"All of the mudslinging back-and-forth between Mylan and Teva only served to reinforce our concern that Chairman Coury would rather keep his pay and power at Mylan's helm than likely lose those benefits to Teva cost- and position-cutting", the investors wrote.
Grassley says Mylan has been unwilling to cooperate or to voluntarily provide documents requested by Judiciary.
Amid that controversy, a number of elected officials questioned whether Medicaid had been receiving the correct amount of rebates from Mylan for EpiPen sales within that program.
Grassley also said taxpayers have a right to "be repaid whatever they are owed", something that could put a dent in the pharmaceutical company's stock price.