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Mylan will pay $465 million to resolve False Claims Act liability

Joe Mont | August 22, 2017

Pharmaceutical companies Mylan Inc. and Mylan Specialty L.P. have agreed to pay $465 million to resolve claims that they violated the False Claims Act by knowingly misclassifying EpiPen as a generic drug to avoid paying rebates owed primarily to Medicaid.

Both companies are wholly owned subsidiaries of Mylan N.V., headquartered in Canonsburg, Pennsylvania. The announcement was made on Aug. 17.

Congress enacted the Medicaid Drug Rebate Program to ensure that state Medicaid programs were not susceptible to price gouging by manufacturers of drugs that were available from only a single source. It subjected single-source, or brand name drugs, to a higher rebate that is payable to Medicaid and that increases to the extent the price of the drug outpaces the rate of inflation. In contrast, generic drugs originating from multiple manufacturers are subject to lower rebates that, at least until recently... To get the full story, subscribe now.