Mylan agrees for $ 465-mn settlement with US DoJ for EpiPen auto-injector

Mylan has agreed to the terms of a $ 465 million settlement with the US Department of Justice (DoJ) and other government agencies that will resolve questions that have been raised about the classification of EpiPen auto-injector and EpiPen Jr auto-injector for purposes of the Medicaid Drug Rebate Program. EpiPen auto-injector is used for the emergency treatment of life-threatening allergic reactions (anaphylaxis).

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 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 provide for resolution of 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. 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. Mylan will continue to work with the government to finalise the settlement.

Heather Bresch, CEO, Mylan, commented, “This agreement is another important step in Mylan’s efforts to move forward and bring resolution to all EpiPen auto-injector related matters. The agreement is in addition to the significant steps Mylan has taken in relation to EpiPen auto-injector over the past several weeks, including the unprecedented, pending launch of a generic version of EpiPen auto-injector and expansion of our patient access programs for this product. Entering into this settlement is the right course of action at this time for the company, its stakeholders and the Medicaid program.”

Mylan will include a pre-tax charge of approximately $465 million in the quarter ended September 30, 2016 as a result of this settlement.