Maker of EpiPen Agrees to Settlement Over Generic Classification

The maker of the EpiPen has agreed to pay $465 million dollars in a settlement with the Department of Justice.

Mylan's payment would settle claims the company misclassified EpiPen as a generic drug in order to avoid rebates, mostly payable to Medicaid. As a brand name drug, it is subject to higher rebates payable to Medicaid.

EpiPen is an emergency epinephrine injection used for allergic reactions.

The regulation is meant to protect taxpayer-funded programs from large price spikes for drugs that are only available from a single source.  The Justice Department says that to keep from paying the rebates, Mylan wrongly classified EpiPen as generic.

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