Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Mylan declines Senate committee request to testify about EpiPen

Published 11/21/2016, 03:12 PM
Updated 11/21/2016, 03:12 PM
© Reuters. A file photo showing the EpiPen auto-injection epinephrine pens manufactured by Mylan NV pharmaceutical company are seen in Washington

(Reuters) - Mylan NV (O:MYL) has declined a U.S. Senate committee request to testify about a $465 million pending settlement to resolve charges the company underpaid government healthcare programs by misclassifying its the EpiPen emergency allergy treatment.

In a Nov. 18 letter to the Senate Judiciary Committee released on Monday, Mylan said the company would not attend since government agencies had also refused to testify.

Senator Chuck Grassley, who chairs the committee and had scheduled the hearing for Nov. 30, said in a statement on Monday that Mylan was "ducking responsibility."

Mylan has come under fire for raising the price of a pair of EpiPens to $600 from $100 in 2008 and listing it with Medicaid as a generic product even though it is listed with the U.S. Food and Drug Administration as a branded product. Companies pay smaller rebates to Medicaid for generics.

Following months of Congressional scrutiny, Mylan in October announced a settlement with the Justice Department.

The settlement has not yet been executed, however.

"This seems to contradict Mylan's claim that all potential liability claims have been resolved," Grassley said.

Officials at the Justice Department and the Centers for Medicare and Medicaid Services, which administers Medicare and Medicaid, have declined to testify at the hearing.

Grassley may reschedule the hearing and has the power to issue subpoenas, Jill Gerber, a spokeswoman for Grassley, said in an email. The authority is rarely used and would require a vote or the unanimous consent of the committee, she added.

"One way or another, I intend to get answers for patients and taxpayers," Grassley said in the statement.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Separately, Grassley wrote on Monday to the Securities and Exchange Commission encouraging it to investigate, if it was not already doing so, whether Mylan misled investors when it announced its settlement with the Justice Department.

He asked the SEC to let the committee know by Nov. 29 whether it was investigating.

The SEC declined to comment. A Mylan spokeswoman did not immediately respond to a request for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.