Mylan on Thursday finalized a $465 million settlement with the federal government over accusations the Canonsburg, Pa.-based drugmaker improperly classified EpiPens as a generic drug to overcharge Medicaid, reports CNBC.
Here are three things to know.
1. The lawsuit alleged Mylan underpaid rebates to state Medicaid programs by classifying Epipens as a generic product. Under this classification, Mylan only paid a 13 percent rebate for every EpiPen sold under the rebate program, compared to 23.1 percent for branded drugs.
2. The final settlement comes 10 months after the drugmaker struck an initial deal with the U.S. Department of Justice. "Bringing closure to this matter is the right course of action for Mylan and our stakeholders to allow us to move forward," Mylan CEO Heather Bresch said in a statement cited by CNBC.
3. The $465 million settlement has drawn scrutiny from lawmakers on both sides of the aisle, as many believe the settlement amount is too low. A May analysis from the HHS's Office of Inspector General estimates Mylan may have overcharged Medicaid $1.27 billion for EpiPens over the last decade.