Lawmakers Encourage Further Probe Into EpiPen Pricing

Senators are asking the Justice Department to investigate whether pharmaceutical company Mylan acted illegally when it classified its life-saving EpiPen as a generic drug and qualified for lower rebate payments to states. The price of the emergency allergy shots has grown to $608 for a two-pack, an increase of more than 500 percent since 2007. At a House hearing last week, CEO Heather Bresch said her company, with sales in excess of $11 billion, doesn’t make much profit off each pen and she signaled that Mylan has no plans to lower prices. In the letter, the senators said that Mylan “may have knowingly misclassified EpiPens, potentially in violation of the False Claims Act and other statutes.” Mylan has classified the EpiPen as a non-innovator multiple source drug. That classification usually is reserved for older drugs available from multiple sellers. That means the company is paying lower rebates, even though there is currently no direct competitor to the EpiPen.