Mylan to pay Connecticut $8 million and provide 10,000 free EpiPens in price-inflation settlement
The pharmaceutical company denies wrongdoing but agreed to settle state allegations that it illegally drove up EpiPen prices. The free devices will go to about 30 community health centers.
HARTFORD, Conn. — The pharmaceutical company Mylan has agreed to pay Connecticut $8 million and provide 10,000 free EpiPens to settle allegations that it illegally inflated prices for the emergency allergy medication, state Attorney General William Tong said Thursday.
The settlement, announced by Tong along with the state Department of Consumer Protection and the Department of Public Health, resolves claims that Mylan violated state antitrust and consumer protection laws. Mylan denies any wrongdoing as part of the settlement, the attorney general's office said.
The free EpiPens will come as 5,000 two-packs. The Department of Public Health will help distribute them to about 30 federally qualified health centers across the state, which serve low-income and underserved patients, according to the release.
EpiPen is a single-dose, self-injecting device that delivers the prescription drug epinephrine to treat severe allergic reactions, including anaphylaxis. Mylan drew widespread criticism in 2016 after a price increase of about 400 percent, which led to congressional hearings, a Federal Trade Commission investigation and lawsuits from consumers and competitors, the attorney general's office said. At their peak, EpiPen sales were about $1 billion a year; they have since fallen to about $469 million a year, the office said.
According to the attorney general's office, complaints alleged that Mylan struck unlawful "pay-for-delay" agreements with competitors to hold back generic epinephrine auto-injectors, then sharply raised prices once it faced no competition. The complaints also alleged that the company lobbied state legislators to require schools to keep the devices on hand, and that it stopped selling single EpiPens in favor of two-packs only, forcing consumers to buy two.
The settlement is separate from a series of antitrust cases Connecticut is leading on behalf of nearly all states and territories against 30 companies and 25 executives in the generic drug industry, alleging long-running conspiracies to inflate prices. Tong's office has announced settlements in those cases with Sandoz, Glenmark, Lannett, Bausch, Apotex, Heritage and Heritage's parent company, Emcure, totaling nearly $500 million.
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