Mylan to pay $73.5 mln to settle drug wholesalers’ EpiPen antitrust claims

Reuters01-17
Mylan to pay $73.5 mln to settle drug wholesalers’ EpiPen antitrust claims

By Mike Scarcella

Jan 16 (Reuters) - Mylan has agreed to pay $73.5 million to settle a class action lawsuit by drug wholesalers accusing the drugmaker of scheming to overcharge them for EpiPen allergy treatment devices.

The preliminary settlement, filed on Wednesday night in federal court in Kansas, requires approval by U.S. District Judge Daniel Crabtree.

Drug wholesalers including KPH Healthcare and FWK Holdings said Mylan conspired with Pfizer to delay launching a generic EpiPen, causing commercial and other buyers to pay more for the life-saving device. Mylan is now part of Viatris.

Mylan did not admit to any wrongdoing, and neither did Pfizer, which settled related claims from the drug wholesalers for $50 million in 2023.

A representative for Mylan and attorneys for the wholesalers did not immediately respond to requests for comment.

EpiPens are handheld devices that allow users experiencing life-threatening allergic reactions to automatically inject a dose of epinephrine.

Mylan, which owns the rights to market and distribute EpiPen devices, raised the price of a pair of EpiPens to $600 from $100 in 2008, spurring lawsuits from wholesalers and others. Pfizer manufactured the EpiPen for Mylan.

Crabtree in December denied a pretrial bid by Mylan to narrow the lawsuit.

Nearly 80 drug wholesalers are part of the settlement class, court papers show. The class period includes purchases beginning in 2014.

The plaintiffs attorneys said they plan to seek up to about 33% in fees from the settlement fund, or about $24.5 million.

A group of consumers in 2021 reached a $345 million settlement with Pfizer over related claims, Mylan reached a $264 million settlement with consumers and insurers in 2022.

The case is KPH Healthcare Services Inc v. Mylan NV, U.S. District Court for the District of Kansas, No. 2:20-cv-02065.

For plaintiffs: Michael Roberts of Roberts Law Firm; and Linda Nussbaum of Nussbaum Law Group

For Mylan: Adam Levin of Hogan Lovells

Read more:

Pfizer to pay $50 mln to settle drug wholesalers' EpiPen antitrust claims

US Supreme Court spurns Sanofi appeal to revive EpiPen suit against Viatris

(Reporting by Mike Scarcella)

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