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Published: Thu, November 10, 2016
Economy | By Melissa Porter

Mylan working to finalize EpiPen Medicaid settlement: CFO

Mylan working to finalize EpiPen Medicaid settlement: CFO

The settlement does not provide for any finding of wrongdoing on the part of Mylan, but the company said it expected to enter into a corporate integrity agreement with the Office of Inspector General of the Department of Health and Human Services.

Mylan said on a call Wednesday that the company is still working with the Department of Justice to finalize that settlement. The settlement with the Department of Justice follows news that EpiPen has been incorrectly classified since late 1997 as a generic product under the Medicaid health program for the poor and disabled, rather than as a brand-name drug, which requires rebates to Medicaid almost twice as high as for generic medicines.

"The system needs reinventing across the entire USA health care landscape", she said, along with greater transparency on how prices are set.

Mylan's announcement earlier this year of a near doubling of the price for a pair of EpiPen injectors to $600 set off a firestorm of criticism from parents, politicians and patient advocates.

Two members of the US Senate Judiciary Committee [official website] sent a letter [text, PDF] to the Federal Trade Commission (FTC) [official website] Monday asking them to review Mylan NV [corporate website], the manufacturer of the EpiPen allergy shot. However, competition is coming.

While Mylan works to integrate recent acquisitions, Bresch said business development plans will focus on smaller bolt-on acquisitions, perhaps to enhance a particular therapeutic area.

Lawmakers, including Grassley, have called for investigations into Mylan's pricing, helping put the product in the spotlight amid a larger debate over big drug price increases in the US.

Mylan posted a net loss of $119.8 million, or 23 cents per share, compared with a profit of $428.6 million, or 83 cents per share, a year ago.

Revenue for the quarter of $3.06 billion was just short of Wall Street estimates of $3.12 billion.

"We remain committed to our recently updated full year 2016 adjusted EPS guidance range of $4.70 to $4.90, and to our $6.00 adjusted EPS target in 2018, with targeted growth in the low-teens in both 2017 and 2018", she said.

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