EpiPen maker to pay $465 million for overcharging

EpiPen maker Mylan will pay a $465 million settlement for overbilling Medicaid for its emergency allergy injectors for a decade. The Justice Department said Mylan improperly classified its products as generic to avoid paying a higher rebate to Medicaid. The drugmaker also failed to pay Medicaid back for cost increases over the inflation rate, something required by law. Mylan has repeatedly hiked the price of EpiPens, which deliver medication to people having life-threatening allergic reactions. The price increased from $94 in 2007 to $608 last year, while experts estimated it costs less than $10 to produce one EpiPen. Rival pharmaceutical company Sanofi filed the whistleblower lawsuit against Mylan. Sanofi will receive about $38.7 million of the payout.