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Mylan Agrees to $73.5 Million Settlement Over EpiPen Pricing Allegations

By  |  January 16, 2025

Mylan, the drugmaker now part of Viatris, has reached a $73.5 million settlement to resolve claims from drug wholesalers accusing the company of inflating prices for its EpiPen allergy treatment devices. According to Reuters, the preliminary agreement was submitted on Wednesday night in a Kansas federal court and is pending approval by U.S. District Judge Daniel Crabtree.

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    The lawsuit, initiated by wholesalers such as KPH Healthcare and FWK Holdings, alleged that Mylan collaborated with Pfizer to delay the introduction of a generic version of the EpiPen. This delay, the plaintiffs contended, caused buyers to pay inflated prices for the life-saving device. Although both Mylan and Pfizer have denied any wrongdoing, Pfizer previously settled related claims with drug wholesalers for $50 million in 2023, per Reuters.

    The EpiPen, a handheld device used to administer epinephrine during severe allergic reactions, has been at the center of several lawsuits over its pricing. Mylan, which managed the marketing and distribution of EpiPens, increased the price of a two-pack from $100 in 2008 to $600, leading to widespread criticism and legal challenges. Pfizer, which manufactured the device, was also implicated in the claims.

    This latest settlement includes nearly 80 drug wholesalers who purchased EpiPens beginning in 2014. According to court filings, the attorneys representing the plaintiffs intend to seek up to 33% of the settlement fund, approximately $24.5 million, as legal fees.

    This is not the first time Mylan has faced substantial financial consequences over EpiPen pricing. In 2022, the company agreed to a $264 million settlement with consumers and insurers. Similarly, Pfizer settled with a group of consumers in 2021 for $345 million.

    Reuters reported that Mylan’s attempt to narrow the scope of the lawsuit was denied by Judge Crabtree in December, paving the way for this resolution. Representatives for Mylan and the plaintiffs’ legal teams did not respond to requests for comment regarding the settlement.

    Source: Reuters