According to Sources close to the matter, the drug company Mylan said on Monday the auto-injector EpiPen’s pretax profits were 60 percent higher than it told Congress. Without a tax-related reduction, the pharmaceutical company’s profits on the EpiPen two-pack would be about $160, higher than the $100 figure the company gave Congress. The company said any lack of clarity was not intentional.
In a statement, Mylan said the following:
“Tax is typically included in a standard profitability analysis and the information provided to Congress has made clear that tax was part of the EpiPen Auto-Injector profitability analysis. In fact, Mylan has provided Congress with a detailed analysis of EpiPen Auto-Injector profitability.”
The company added:
“It also is important to note that use of a statutory tax rate for the jurisdiction being analyzed (in this instance, the U.S.) is standard. Just as we did not use a blended global tax rate, we also did not allocate corporate expenses associated with running the business, which would have further reduced its profitability. We believe it is most appropriate, and conservative, to focus entirely on EpiPen Auto-Injector specific costs and associated taxes.”
The company has found itself under scrutiny since people started seeing the cost of EpiPen rise to unaffordable costs. To such ends that people believe it is unethical to charge so much for a drug that without it, will result in people with severe allergies dying as a result.
Last week, Mylan CEO Heather Bresch testified before a congressional committee about steep price increases on the lifesaving anti-allergic-reaction drug. House members asked Bresch to provide more evidence for the company’s claim that its profits were just $100 for a two-pack of the injectors, despite a $608 list price, according to Dow Jones.
It may strike some as very convenient that the math was done wrong in a way that makes the drug seem a little more affordable despite people saying otherwise. Possibly the drug company who denies doing so, presented the false numbers in hopes the mistake would not be discovered but with the plan that if it were discovered they simply say as they are now it was a mistake. Quite sure a mistake such as this would not be made with the numbers on the sales shelf, that is with the price.
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