Mylan finalizes settlement in EpiPen case

PITTSBURGH — Generic drug giant Mylan announced yesterday that it has finalized its settlement with the Department of

PITTSBURGH — Generic drug giant Mylan announced yesterday that it has finalized its settlement with the Department of Justice for overcharging Medicaid for the EpiPen.

The settlement amount is $465 million, unchanged from when Mylan announced a preliminary deal in October that was criticized by lawmakers and others as not being harsh enough. The EpiPen emergency allergy shot has been classified as a generic instead of a brand name drug for many years, allowing Mylan to pay lower rebates to Medicaid and resulting in states paying more for the product. Drug companies are responsible for ensuring that their products are correctly classified.

Mylan said yesterday that it would reclassify the auto-injector as a brand name, or innovator drug, and pay the higher rebates under the Medicaid Drug Rebate Program effective April 1, 2017. The settlement does not contain an admission or finding of wrongdoing, the company said.

Last fall, the preliminary settlement was blasted by Bay State U.S. Sen. Elizabeth Warren, as “shockingly soft.”

Sen. Chuck Grassley, R-Iowa, was another early, vocal critic. He had scheduled a hearing to probe the settlement in November, but canceled it after Mylan and the Justice Department refused to show. At the time, Grassley said the Senate Judiciary Committee was considering rescheduling the hearing with witness subpoenas.

Besides the Medicaid issue, Mylan faced widespread backlash last year for raising the price of the EpiPen by some 500 percent in recent years.

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    Article Mylan finalizes settlement in EpiPen case compiled by www.bostonherald.com