Page 113 - Case Lab Case Analysis
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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.
