Senator: Mylan Overcharged Government By $1.2 Bln For Epipen

(RTTNews) - Pharmaceutical company Mylan might have overcharged the federal government by about $1.27 billion for EpiPens, the anti-allergy epinephrine injectors, according to a report from the Department of Health and Human Services.

Senator Chuck Grassley, R-Iowa, the chairman of the Judiciary Committee, said that she received an estimate from the Department of Health and Human Services Office of Inspector General that the taxpayers may have overpaid for EpiPen by as much as $1.27 billion from 2006 through 2016. This is far more than the $465 million that the company reported it had agreed to in settlement negotiations with the Justice Department.

If the estimate of the report is correct then Mylan would have to pay a massive fine.

"High prescription drug prices are a major concern across the country. I'm working to advance legislation that would help, including bills to bring more lower cost generic drugs to the market. As part of bringing down drug costs, we have to make sure companies that take part in federal health care programs aren't gaming the system. Congress has a constitutional responsibility to conduct oversight of the executive branch, and making sure taxpayers don't overpay for EpiPens or any other drugs in public health care programs is our job. The taxpayers spend billions of dollars on prescription drugs through Medicaid, Medicare and other programs," Grassley said.

Mylan has been on the firing end from lawmakers and the public since the company implemented sharp price increases for a pair of EpiPen auto-injectors to $608 from about $100 in 2008. Mylan had acquired the product in 2007.

EpiPen is an epinephrine injection used to treat life-threatening allergic reactions, including anaphylaxis, in people who are at risk for or have a history of serious allergic reactions.

Early this year, pharmaceutical company Kaleo announced that Auvi-Q, the rival for EpiPen, will be available by prescription starting February 14 for $360.