US pharmaceutical company mylan will pay $465 million and termination fee

Source: Wall Street news / SHIMENG 2016-10-11 according to the Wall Street Journal, American pharmaceutical company mylan agreed to pay $465 million to solve the U.S government's accusation that its emergency anti allergy injection device Epipen was improperly classified The U.S federal government has previously accused mylan of overcharging Epipen drugs in Medicaid programs for millions of dollars over the past five years In addition, members of the Senate hearing involved in the case also pointed out that Meilan's classification of Epipen in the government's Medicaid was inappropriate In this case, it is very important to return Epipen as the original drug or non patent drug, because different classifications require different drug manufacturers to refund fees to medical institutions Non patent drugs require 13% rebate to medical institutions, but the original drug requires a rebate of at least 23.1%, because the rate of price increase is faster However, due to the improper classification of Epipen, Meilan's refund payment to state medical institutions was reduced Epipen is a vascular injection containing a dose of epinephrine for the treatment of some acute allergies Since the acquisition of Epipen in 2007, mylan has raised the price of the drug more than six times, or more than 500% According to truven health analytics, the price of Epipen as of August this year was $608.61 for two Media reports said it was a case of high drug prices, and Congress held hearings on the issue of high Epipen prices According to the Wall Street Journal, mylan said that although the settlement was reached, the U.S Department of justice did not find the company involved in any illegal activities Mylan shares rose 12% after trading in the US, hitting a peak of $40.15 At 7:30 Beijing time, the stock fell back to $39.45 The company also lowered its 2016 financial guidance, mainly due to the previously announced expansion of Epipen market access project, as well as the introduction of generic drugs of Epipen Meilan will also record the $465 million and termination payments into its third quarter profit and loss.