A $465 million settlement happened between the U.S. Justice Department and Mylan NV. This resolves the claim that the drug maker was able to avoid paying the rebates that it owed to the government thereby defrauding the taxpayers by classifying its product EpiPen as generic in the recent Epipen settlement case.
The emergency allergy treatment product EpiPen was marketed as a brand-name medicine, but classified as generic.
The drug maker had disclosed around 10 months back that it had reached an agreement, though the U.S. Attorney’s Office in Massachusetts confirmed it only now. The congressional members criticized the agreement saying that it was an easy getaway for Mylan.
William Weinreb, the acting U.S. Attorney stated
Taxpayers rightly expect companies like Mylan that receive payments from taxpayer-funded programs to scrupulously follow the rules.
Though the deal is final, the drug maker has not admitted that it did anything wrong. It only agreed to reclassify its product and pay the rebate that is applicable under the new classification. Heather Bresch, the Chief Executive of Mylan said in a statement –
Bringing closure to this matter is the right course of action for Mylan and our stakeholders to allow us to move forward
Following the news of the settlement, the shares of the company rose by 2.1% on the Nasdaq.
The company came under fire last year when it raised the price of EpiPen exorbitantly from $100 in 2008 to $600. This enrages the consumers and it became the eye of the storm in the ongoing U.S. debate that is over the high costs of the prescription medicines.