Congress Seeks More Information On Mylan's EpiPen Profits

(RTTNews) - The House Oversight and Government Reform Committee has asked EpiPen maker, Mylan, for an explanation for misleading Congress about the life-saving allergy auto-injector EpiPen's profits, reports said, citing a letter sent to the company.

Mylan CEO Heather Bresch, while testifying on Capitol Hill in Washington, D.C., on September 21, is said to have omitted key information used to calculate the profit figure. Bresch told the panel that the company made just $50 in profit for EpiPens sold for more than $300 apiece. But, according to lawmakers, those figures were calculated after factoring in the 37.5% U.S. tax rate. Before taxes, the EpiPen profit reportedly is $160 for a two-pack.

Committee Chairman Jason Chaffetz of Utah and Rep. Elijah Cummings of Maryland, the panel's senior Democrat, said, "Failing to disclose tax assumptions that formed the basis for the profit per pack claim, despite opportunities to do so before and during the hearing, raises questions."

Chaffetz and Cummings, in their letter, asked the CEO to provide information and documents relating to Mylan's taxes, the actual rate paid to the IRS for each year since 2007, as well as a list of the company's profits and expenses during that time.

Mylan's EpiPen is the predominant epinephrine auto injector, a device and drug used for the emergency treatment of life-threatening allergic reactions, in the US market. It is used in emergencies to stop anaphylaxis, the potentially fatal allergic reaction to insect bites and foods.

Mylan is facing a widespread outrage from lawmakers and the public after the company implemented sharp price increases for a pair of EpiPen auto-injectors to $608 from about $100 in 2008. Mylan had acquired the product in 2007.

In response to the letter, Mylan spokesman Nina Devlin reportedly said the company remains committed to productive and continued cooperation with the committee, and that it intends to respond to the request for additional information.