Congress Asks Mylan About Taxes Used to Downplay EpiPen Profits

  • The drugmaker said it makes $100 from a pack of EpiPens
  • Lawmakers question Mylan failure to disclose tax impact

A House committee wants Mylan NV to account for tax assumptions that lawmakers say may have deflated the amount the drugmaker purports to make off of each EpiPen allergy shot that it sells in the U.S. 

Chief Executive Officer Heather Bresch testified Sept. 21 before the House Committee on Oversight and Government Reform that Mylan gets $100 in profit from the sale of a $600 two-pen pack after rebates and costs of goods. The chart she presented lawmakers didn’t specify that taxes were included in the calculation.

“Failing to disclose tax assumptions that formed the basis for the $100 profit per-pack claim, despite opportunities to do so before and during the hearing, raise questions,” representatives Jason Chaffetz, the Utah Republican who chairs the oversight committee, and Elijah Cummings, a Maryland Democrat, wrote in a letter Mylan on Friday.

Mylan released a more detailed breakdown of EpiPen’s profitability on Sept. 26 that included $187 million in taxes last year.

“We remain committed to productive and continued cooperation with the committee, and we intend to respond to their request for additional information,” Nina Devlin, a spokeswoman for Mylan, said in an e-mail.

The letter from Chaffetz and Cummings listed 18 categories of information the lawmakers expect Mylan to produce, including documents sufficient to show Mylan’s U.S. tax rate and more financial details related to the EpiPen. At the hearing last month, Chaffetz called Bresch’s presentation on profits and expenses “dumbed down.”

“It just feels like you’re not being honest and candid with Congress without some basic information in here,” Chaffetz told Bresch.

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