Sen. Chuck Grassley will hold a hearing to examine Mylan NV's reported $465 million settlement with the U.S. Justice Department regarding the drugmaker's pricing of its EpiPen allergy shot for federal health programs.
The hearing also will look at whether government programs are effectively preventing drugmakers from misrepresenting their products in ways that lead to higher costs for taxpayers, Grassley, an Iowa Republican who's chairman of the Senate Judiciary Committee, said Wednesday in an e-mailed statement.
Medicaid, the federal health program for the poor, receives lower discounts on products classified as generics. EpiPen was classified incorrectly as a generic since 1997, both by Mylan and previous makers of the medicine, which treats life-threatening allergic reactions.
"Americans deserve to know what the government is doing to hold Mylan accountable, recoup lost tax dollars and prevent similar behavior in the future," Grassley said in the statement.
Lawmakers from both parties have criticized the settlement, with Democratic Senator Richard Blumenthal of Connecticut calling it a "sweetheart deal" in an interview last week. The government's financial loss from EpiPen's misclassification may have been more than $700 million, Blumenthal said.
Mylan spokeswoman Nina Devlin didn't immediately respond to a request for comment after business hours.
The hearing is scheduled for Nov. 30 at 10 a.m. The Justice Department has declined to comment on Mylan's announcement of a settlement, an indication that an agreement may not be final and the two sides are still discussing final details of an accord.
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