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Letter to Heather Bresch, CEO of Mylan - Regarding Reports that Mylan May Have Overcharged the Department of Defense Exorbitant Rates for EpiPen Purchases

Letter

Date: Nov. 7, 2016
Location: Washington, DC
Issues: Defense Health and Health Care

Dear Ms. Bresch,

We write to express concern regarding recent reports that the Department of Defense (DoD) was charged exorbitant rates for EpiPen purchases at retail pharmacies -- up to three times the discounted price that DoD receives for drugs administered at Military Treatment Facilities. We are alarmed that Mylan may have overcharged our military for this life-saving drug. Such reports heighten concerns that Mylan may have knowingly misclassified the EpiPen as a "non-innovator multiple source drug," avoiding larger rebate payments under the Medicaid Drug Rebate program at the expense of states and taxpayers.

Federal law requires that the Department of Veterans Affairs (VA) determine which drugs require manufacturers to provide a refund for purchases made by certain federal agencies including purchases made through the DoD's retail pharmacy network. In light of Mylan's misclassification, the VA previously determined the EpiPen to not be eligible for the DoD retail refund program under 10 U.S.C. § 1074g(f). As a result, DoD appears to have paid in excess of $50 million for the product over nearly a decade.

Given Mylan's stated intent to properly reclassify the EpiPen, Mylan should take immediate action to ensure that service members, their families, and the federal government do not pay excessively for EpiPen. Since it appears that due to Mylan's misclassification the DoD was overcharged through its retail pharmacy network, what are Mylan's plans to reimburse the DoD? If Mylan's intention is to "move forward and bring resolution to all EpiPen Auto-Injector related matters," it is imperative that you quickly resolve this additional discrepancy and take steps to refund our military for past overpayments.

The American people have been rightly outraged by Mylan's excessive pricing and misclassification of its product. Now, it appears that Mylan's decisions have impacted our Armed Forces, those who have risked their lives to protect our great nation. We urge you to right this wrong quickly and completely. Please respond no later than November 18, 2016.


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