Page 12 - Mylan EpiPen
P. 12
In September 2016, the New York State Attorney General
began an investigation into Mylan's EpiPen4Schools
program in New York to determine if the program's
contracts violated antitrust law and the West Virginia State
Attorney General opened an investigation into whether
Mylan had given the state the correct discount under the
Medicaid Drug Rebate Program and subpoenaed the
company when it refused to provide the documentation the
state requested. It questioned why EpiPen had been
classified as a generic rather a proprietary product in the
program since 1997; generic drugs have lower rebates (13%)
than proprietary drugs (23%), and price hikes for generic
drugs cannot be passed onto states.
September 2016, also saw a Silicon Valley engineering
consultancy (Wallace and Krevitt ) reverse engineer an
EpiPen and estimated the manufacturing and packaging
costs at about $8.02 a 90-plus-fold mark-up over the retail
price.