Mylan, the maker of the EpiPen, announced that it is under federal investigation.
Mylan, the maker of the EpiPen emergency injectors, has announced that it is under federal investigation for its product price unneeded raises after also revealing lower than expected quarter results.
Mylan Inc., the England established but Pittsburgh, United States run company has been facing quite some difficult times after their product price overcharges have turned on them.
The company has been implicated in a number of controversies related to its EpiPen product prices, which also led to a lawsuit after they overcharged the federal government.
As the lawsuit was settled at a $465 million value, Mylan released lower than expected third quarter year reports as a result of the settlement.
Mylan Inc. reported a $119.8 million quarter loss which translates into a 23 cents drop per share and cannot be compared to last year’s declared profit of $428.6 million.
With the market analysts expecting a quarter revenue of $3.23 billion, the drug maker company announced a $3.06 billion third-quarter revenue.
Out of the sum total, the company declared that $2.61 billion came from its generic drugs segment and that the specialty drug unit which produces and distributes the EpiPen and a couple of other brand products registered sales of up to $418.7 million.
Following the federal court settlement, which also cut back on the quarter results, rumors had been flying that Mylan was also facing other governmental probes.
The rumors were confirmed late on Wednesday during a Securities and Exchange Commission (SEC) filing. The drug maker company announced that it is the current target of two federal agencies’ probes, both related to pricing methods and that its premises have been searched by authorities.
One of the probes came on October 7, from the Division of Enforcement which sought to collaborate with their SEC in relation to the Mylan products sold to the Centers for Medicaid and Medicare during the Medicaid Drug Rebate Program.
The second probe was announced even earlier, on September 8, and came from the Department of Justice. The federal agency seeks to establish if the company did, in fact, fixed its prices and as such, proceeded to examine the premises with the help of search warrants.
The Department also subpoenaed a number of Mylan employees, a company subsidiary, and also a senior executive in their inquiry.
According to Mylan, the federal investigation is looking for additional data in relation to the company’s marketing, sale, and pricing of four of its products.
The products, which are generic medicines, are verapamil, cidofovir, propranolol, and glipizide-metformin.
Any possible communication between the company and the market competitors in relation to the aforementioned medicines is also being looked into.
Following the public declarations, Mylan also stated its intention to cooperate with both federal investigations performed by the Justice Department and the SEC.
Mylan seems to be one of the other generic drug makers to be reportedly investigated by the Department of Justice over alleged collusion and fixed prices.
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