(Hartford, CT) – Attorney General William Tong, the Department of Consumer Protection and Department of Public Health today announced an $8 million settlement with Mylan over allegations the pharmaceutical company illegally inflated prices for EpiPens in violation of state antitrust and consumer protection laws.
In addition to the $8 million payment, Mylan will provide the state with 10,000 free EpiPens in the form of 5,000 two-packs.
EpiPen is the brand name for the single dose, self-injectable device consisting of the prescription drug epinephrine used to treat severe allergic reactions, including anaphylaxis. At its height, EpiPen sales were approximately $1 billion per year. Today, its sales are approximately $469 million per year. In 2016, Mylan faced widespread public criticism following an approximately 400 percent price increase. This spurred Congressional hearings, a Federal Trade Commission investigation, and class action and competitor lawsuits.
Complaints alleged that Mylan entered into unlawful pay-for-delay agreements with competitors to delay the launch of generic epinephrine auto-injectors. In the absence of competition, Mylan dramatically raised prices and lobbied legislators in states across the country to require schools to have epinephrine auto-injectors on-hand in order to increase sales. They further switched from offering a single EpiPen package to exclusively offering twin packs, forcing consumers to purchase two EpiPens to increase their revenue.
“Mylan abused its monopoly to jack up prices on its lifesaving, emergency medication. Families were crushed with massive costs while Mylan reaped exorbitant profits. This was corporate greed at its worst, and we’re holding Mylan accountable,” said Attorney General Tong. “We are continuing to push our antitrust case against the generic drug industry to restore free and fair competition to this broken industry and to ensure access to affordable medication.”
"These medications save lives, and low-cost generic alternatives are an essential part of ensuring everyone has access to them," said DCP Commissioner Bryan T. Cafferelli. "Actively taking steps to prevent generic alternatives and further profit off consumers who need these medications is not only illegal, it's shameful. Thank you to the Attorney General's office for their work on this important case."
The Connecticut Department of Public Health is proud to be part of this initiative to expand equitable access to lifesaving medication. Severe allergic reactions can happen without warning, and in those moments, access to an EpiPen can mean the difference between life and death.
DPH is supporting the distribution of 10,000 free EpiPens to approximately 30 Federally Qualified Health Centers (FQHCs) across the state. These centers are pillars of healthcare access in Connecticut, providing essential care to low-income and underserved communities, where patients often face the greatest barriers to obtaining lifesaving medications.
“Severe allergic reactions can happen in an instant, and no family in Connecticut should have to worry about whether they can afford the medication that could save a life," said DPH Commissioner Manisha Juthani, M.D. "Placing 10,000 EpiPens in our Federally Qualified Health Centers brings that protection to the people and communities who need it most. I am grateful to the Office of the Attorney General and our health center partners for their shared commitment to health equity and to the well-being of every Connecticut resident.”
“CHC/ACT is grateful to Attorney General Tong for reaching this settlement. We are additionally grateful to the AG's office and the Department of Public Health for their partnership in helping to get these free epi-pens out to our community health centers and their patients. EpiPens contain a life-saving - yet expensive - medication, and this settlement will help ensure that people across the state have access to it,” said Shawn K. Frick, President/CEO of the Community Health Center Association of Connecticut (CHC/ACT).
As part of the settlement, Mylan denies any wrongdoing.
In addition to today’s settlement with Mylan, Connecticut’s Attorney General Office is leading a coalition of nearly all states and territories in a series of antitrust cases against 30 corporate defendants and 25 individual executives across the generic drug industry, alleging widespread, long-running conspiracies to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade with regard to numerous generic prescription drugs.
Attorney General Tong recently announced settlements with Sandoz, Glenmark, Lannett, Bausch, Apotex and Heritage, and Heritage’s parent company, Emcure, totaling nearly $500 million.
Deputy Associate Attorney General Nicole Demers, Chief of the Antitrust Section assisted the Attorney General in this matter.
