Mylan is target of 2 probes, has 3Q loss due to EpiPen fine

TRENTON, N.J. (AP) — The maker of EpiPen emergency allergy injectors, under a microscope for repeatedly jacking up the price of the life-saving device, revealed Wednesday that it's a target of two price-related probes by federal agencies and has had its premises searched.

In the SEC filing late Wednesday, Mylan disclosed that on Oct. 7, Mylan received a document request from the Division of Enforcement at the SEC seeking communications with the Centers for Medicare and Medicaid and documents concerning Mylan products sold to the Medicaid Drug Rebate Program.

Mylan, which is technically based in England but operates out of its Pittsburgh-area headquarters, also disclosed in the filing that on Sept. 8, the Department of Justice subpoenaed a company subsidiary, a senior executive and other employees about alleged price fixing and also executed multiple search warrants related to its probe.

The SEC filing also noted that Mylan has been hit this year with about 20 potential class action lawsuits filed by either shareholders or companies that paid for Mylan's products alleging conspiracies to fix and raise prices for various generic medicines it sells.

The settlement with the Justice Department followed news that EpiPen has been incorrectly classified since late 1997 as a generic product under the Medicaid health program for the poor and disabled, rather than as a brand-name drug, for which rebates owed to Medicaid would be nearly twice as high as for generic medicines.