Viatris, the drug maker formerly known as Mylan, announced Monday that it agreed to pay $264 million to settle a class action lawsuit alleging the company was involved in an illegal plan to market epinephrine. monopolize auto-injector devices known as EpiPens. , which are used to treat severe allergic reactions.
The proposed settlement, which must be approved by a judge, would resolve a legal battle that began after Mylan increased the price for a pack of two EpiPens from $608 in 2016 from $100, the price since 2007, according to court documents.
In the lawsuit, a group of plaintiffs, made up of consumers, health insurers and other third-party payers, alleged that by drastically increasing the price of EpiPens, the drug maker was “unlawfully exercising its monopoly power.”
“Were the price increases due to market conditions, increases in production costs, or shortages in the supply of epinephrine?” according to the complaint. “Absolutely not. They were driven solely by irresponsible executives and corporations trying to take advantage of human misery and fear.”
Many people involved in the lawsuit had paid thousands of dollars for EpiPens over the years, including an Arizona mother who paid $2,475 out of pocket for her son who is allergic to nuts and peanuts, and a Delaware father. who spent more than $1,100 on EpiPens for his son who is allergic to milk, eggs and peanuts, according to the lawsuit.
EpiPens are made by two Pfizer subsidiaries – King Pharmaceuticals and Meridian Medical Technologies – and sold by Viatris.
In July, Pfizer and its subsidiaries settled their portion of the lawsuit for $345 million, denying any wrongdoing.
In its quarterly report on Monday, Viatris said the company “believes that it has acted lawfully and pro-competitively and that the settlement contains no admission of liability”.
“The board of directors believes that this settlement is in the best interests of the company and its stakeholders,” the report said. “Resolving these indirect buyer cases will allow the company to move forward and continue to focus on its strategic priorities and mission to empower people around the world to live healthier lives at every stage of life.”
Neither Viatris officials nor lawyers representing the company immediately responded to a request for comment Monday night.
Lynn Sarko, an attorney representing the plaintiffs, said in a statement that he urged consumers and third-party payers who paid for EpiPens to learn more about the settlement on a website where claims can be filed.
“We are pleased that the EpiPen antitrust lawsuit has now been completed,” Paul Geller, another attorney representing the plaintiffs, said in a statement, adding that the settlement is subject to court approval.
The lawsuit also alleged that the drugmaker misclassified EpiPens under the Medicaid Drug Rebate Program to save hundreds of millions of dollars in rebates, and intervened in regulatory proceedings to delay competitors from entering the market.
The price increase in 2016 sparked outrage, especially among parents of children with allergies. Thousands of people signed a petition calling on Congress to intervene.
After protests over the company’s increase in the price of EpiPens in 2016, Mylan, as Viatris was then known, introduced a generic version of its own product. But it was announced with a wholesale price of $300 for a pack of two, half the price of the brand name EpiPen.
In 2016, Mylan reached a $465 million settlement with the Department of Justice and other government agencies over allegations that the drugmaker overcharged Medicaid for its treatment by falsely classifying it as a generic drug.
