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W.Va. seeks Mylan records on EpiPen price hikes

Kevin McCoy
USA TODAY

West Virginia's top legal official Tuesday sought court enforcement of a subpoena that seeks answers from Mylan N.V. (MYL) about spiraling price hikes the pharmaceutical company imposed for its EpiPen lifesaving allergy injectors.

Filed on the eve of congressional hearings scheduled over the increases, the court petition is part of an investigation that could lead to Medicaid fraud charges against the Europe-based company.

Mylan provided initial answers to the subpoena issued on Aug. 26, but missed a Sept. 7 deadline to provide all the requested information, West Virginia Attorney General Patrick Morrisey said in the petition filed in the Circuit Court of Kanawha County. The company claimed it could not provide further information until after the Capitol Hill hearings, which "could continue for weeks," the petition said.

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The investigation focuses on hikes that raised Mylan's price for an EpiPen twin pack from roughly $100 in 2009 to approximately $600 this year. Allergy sufferers use the injectors to treat potentially life-threatening attacks. They sometimes keep three sets of EpiPens, which have a minimum shelf life of 12 months.

The subpoena also seeks information that would show whether Mylan underpaid on rebate amounts needed to participate in West Virginia's Medicaid program. Public reports have suggested the company paid rebates associated with "non-innovator" drugs, even though brand-name products like the EpiPen injectors generally require higher rebates, Morrisey's office said.

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"I have a statutory responsibility to investigate any potential antitrust violation," Morrisey, a Republican official, said in a written statement. "My office owes it to consumers to be their watchdog and turn over every rock to ensure fair play."

Confirming the West Virginia investigation, Mylan said it "has been cooperating and continues to cooperate by providing information in response to the Attorney General's inquiry."

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The company's CEO, Heather Bresch, is scheduled to answer questions about the EpiPen price hikes during the Wednesday hearing by the House Committee on Oversight and Government Reform. Bresch is the daughter of Sen. Joe Manchin, D-W.Va.

The Senate Special Committee on Aging separately issued an Aug. 24 letter asking Mylan for information about the EpiPen cost increases.

In a Tuesday letter, Republican members of the Senate Committee on Finance requested a review by the Centers for Medicare & Medicaid Services’ administration and oversight of the Medicaid Drug Rebate Program regarding EpiPens.

Mylan shares edged 0.6% lower Tuesday to close at $41.26.

Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc

 

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