Shares in government scapegoat-du-jour Mylan are tumbling once again today following accusations from Senator Ron Wyden – the top Democrat on the Senate finance committee – that Mylan may have misclassified EpiPen under the Medicaid program, causing overpayments for the last two decades. It appears the populist war against Myland just went to '11' as the drug company may face major retroactive penalties.
As Bloomberg reports,
“It has recently come to our attention” that Mylan classified EpiPen as generic drug under Medicaid Drug Rebate Program even though it is a branded drug under FDA’s new drug application.
According to Wyden and Pallone, EpiPen may have been incorrectly designated as a generic in the Medicaid program since at least 1997, despite being considered a brand-name drug by the Food and Drug Administration and Medicare.
This would mean Mylan has been “vastly underpaying rebates owed to Medicaid for the EpiPen for years,” the lawmakers said.
They asked Department of Health and Human Services for more information about the drug’s classification. Wyden is the ranking Democrat on the Senate Finance Committee, and Pallone is the ranking Democrat on the House Energy and Commerce Committee.
And shareholders are unhappy…
Full Letter below…
Wyden Pallone EpiPen Medicaid Drug Rebate Letter-Sept 2
via http://ift.tt/2bKskmY Tyler Durden