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September 25, 2017

Iowa Settles with Mylan for Overcharging Taxpayers by Underpaying EpiPen Government Rebates

Mylan to pay Iowa $1.5 million as part of $465 million joint federal-state settlement

DES MOINES – Attorney General Tom Miller this month signed onto a $465 million joint federal-multistate settlement with drugmaker Mylan Inc. and a subsidiary to resolve allegations that Mylan knowingly overcharged taxpayers for the life-saving allergy injection drugs EpiPen and EpiPen Jr. dispensed to Medicaid beneficiaries.

The final settlement, which includes a $1.5 million payment to Iowa, is tied to an agreement in principle announced August 17 by the U.S. Department of Justice to resolve a federal False Claims Act case.

The Pennsylvania-based company manufactures, markets and sells pharmaceuticals through its wholly-owned subsidiaries, including Mylan Specialty, which owns the exclusive rights to sell EpiPen in the United States.

“The facts of case may be complicated, but the simple result is we’re holding Mylan accountable for deceiving our state’s Medicaid program in how the company charged for EpiPens,” Miller said. “While we allege Mylan overcharged the government, it really boils down to Mylan taking money from taxpayers that the company knew it wasn’t entitled to.”

The settlement resolves allegations that Mylan misclassified EpiPen with federal regulators and failed to report appropriate pricing information. This resulted in Mylan paying lower state and federal rebates than it would have paid had it properly classified the drugs.

The settlement also resolves allegations that Mylan Specialty overcharged certain entities that participated in the federal 340B Drug Pricing Program. The 340B program provides outpatient drug discounts to certain health care providers.


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