The public has now been made aware that Mylan NV (NASDAQ:$MYL) has finalized a $465 million deal with the United States Department of Justice. This is significant news as it marks the end of a suit that claims the drug maker overcharged the government for its EpiPen emergency allergy treatment, Reuters said.
The deal was revealed on Thursday, August 17 by the United States Attorney’s Office in Massachusetts, 10 months after it was solidified. Even though Mylan stuck to its claim that it had done nothing wrong, the government said taxpayers expect “companies like Mylan that receive payments from taxpayer-funded programs to scrupulously follow the rules.”
According to the government, Mylan misclassified the EpiPen as a generic instead of a branded prescription. They claim Mylan purposefully misclassified the EpiPen in order to avoid paying rebates to Medicaid after Sanofi SA – the company’s French rival – went to the authorities in 2015. As a reward, Sanofi will get almost $38.8 million from the government.
If you’re interested in the drug manufacturers industry, you will know that it is not just Mylan who is working itself out of hot water. For instance, Valeant Pharmaceuticals (TSE:$VRX) has yet to prove it can pay down its debt.
In midday trading Thursday, MYL stock traded up 1.5% to $30.93.
Featured Image: mylan.com
