Taxpayers overpaid $1.3B for EpiPen, $800M more than Mylan claimed; shares ease 1%

|About: Mylan Inc (MYL)|By:, SA News Editor

Mylan N.V. (MYL -1%) slips on below average volume on the heels of an announcement from Senator Chuck Grassley's (R-Iowa) office that an HHS estimate showed taxpayers overpaid by as much as $1.27B for EpiPen from 2006 through 2016, $805M more than the company reported during settlement talks with the Department of Justice. The nature of the overcharges was a misclassification of the product under the Medicaid Drug Rebate Program.

Senator Grassley has requested a full accounting of the matter for months. The Centers for Medicare and Medicaid Services (CMS) provided records that confirmed that CMS notified Mylan on several occasions that EpiPen was misclassified, but the company took no action. Mylan has repeatedly refused to provide its records of communications with CMS to the Senate Judiciary Committee. A subpoena is the next step, a real possibility.

Previously: Mylan will be a no-show at Senate hearing (Nov. 22, 2016)

Previously: Senator Grassley says Mylan a bit over the top with EpiPen settlement press release (Nov. 21, 2016)

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