Mylan’s price hike on EpiPens adds millions to DoD spending

Mylan's price hikes on EpiPens have added millions to the Department of Defence spending since 2008, which is covering more prescriptions for the lifesaving allergy shot at near retail prices, Reuters reported citing government data it was provided with, in an exclusive report.

According to the report, Pentagon spending increased to $57 million over the $9 million in 2008 due to both volume and price increases with the latter accounting for the larger hit, according to the previously unreported data.

EpiPens were available at discounted prices to Pentagon at military treatment facilities and by mail order, though nearly half of its spending was at retail pharmacies where it most recently paid an average of $509 for EpiPen and $528 for EpiPen Jr two-packs - three times higher than its discounted rate, the data showed.

That might change, Reuters was told by both Mylan and the Pentagon with discussions underway that could extend the military discount to EpiPens filled at retail pharmacies through the use of rebates.

Mylan spokeswoman Nina Devlin offered no comment on the specific Department of Defence spending. In an emailed statement she said talks were underway to address any questions or concerns from the agency.

Meanwhile, executives of EpiPen maker Mylan NV would not likely suffer a reduction in their pay from the company's recent $465 million settlement of allegations that it improperly overcharged Medicaid for the lifesaving drug, The Wall Street Journal reported.

That was because of Mylan's use of a non-standard measure known as ''adjusted diluted earnings'' for pay calculation which excluded the costs of such litigation settlements, according to the company's regulatory filings.

Mylan had reached a settlement with the federal government earlier this month which remains to be finalised. The settlement comes at a substantial cost for Mylan at more than double the company's pretax earnings for the first six months of 2016.