Mylan CEO misled lawmakers about EpiPen profits—they’re 66% higher | Ars Technica:
"The EpiPen profit figures that Heather Bresch, CEO of EpiPen maker Mylan, Inc., proudly displayed on a giant chart to the seething House Oversight and Government Reform Committee last week were misleading at best and a flat-out lie at worst, according to a filing to the Securities and Exchange Commission.
EpiPen maker CEO to seething lawmakers: We’re doing the world a favor
Bresch, who was called before the committee to explain steep price hikes of the life-saving devices, insisted that the company only makes $100 profit per two-pack of EpiPens.
The list price for such a two pack now stands at $608.
However, back in 2007, before Mylan bought the rights to the pens and raised the price 15 times, an EpiPen was priced at around just $50.
In her testimony, Bresch blamed the puzzlingly small profit on undefined costs and America’s complicated healthcare system.
The committee, however, didn’t buy that—and rightly so.
It turns out that the $100 profit figure was calculated by applying a 37.5 percent tax rate, which the company likely doesn’t pay.
And the post-tax product was actually incorrect—it should have been $104 per two pack.
So, the real, pre-tax profit from an EpiPen two pack is $166, a 66 percent increase from what Bresch told Congress..."
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