According to a statement released by EpiPen manufacturer, Mylan, the company has agreed to a $465 million settlement with the Department of Justice and other government agencies to resolve questions over their Medicaid rebates.
The settlement comes after the company was accused of misclassifying EpiPen as generic when it should have been labeled as a brand product.
What is surprising about the settlement to some is that Mylan is admitting to no wrongdoing. The company is simply agreeing to pay the settlement as “another important step in Mylan’s efforts to move forward and bring resolution to all EpiPen Auto-Injector related matters,” according to a statement put out by Mylan Chief Executive Heather Bresch. “Entering into this settlement is the right course of action at this time for the Company, its stakeholders and the Medicaid program.”
Since Mylan took over production of the allergy auto-injector, it has increased the price of the device by 500%, causing widespread public outrage.
Following the public outcry, the federal government took notice and accused Mylan of overcharging federal and state Medicaid programs by millions of dollars. However, the company defended its price increases by pointing blame at the current health care system and promoting the upgrades it had made to the medical device.
Read the company’s full statement here.