West Virginia AG subpoenas Mylan over EpiPen price hike

According to the USA Today report, Mylan’s relationship with the National Association of State Boards of Education appears to have begun in October 2012, when the company sponsored several health presentations at the association’s annual conference. The single-use, epinephrine auto injector has become a must-have for counteracting the effects of an allergic anaphylactic reaction.

WV Attorney General Patrick Morrisey confirmed the investigation today, revealing that he’d issued a subpoena to Mylan back in August, seeking documents and other information related to EpiPen, but that the company failed to meet the September 7 deadline.

Morrissey said the company may have overcharged its Medicaid program by labeling the EpiPen as a generic drug, even though it is sold as a brand-name drug, according to Bloomberg.

A test for the shares looms on Wednesday, when Mylan CEO Heather Bresch testifies before the U.S. House of Representatives Oversight Committee over price increases of EpiPen, an auto-injector of allergy medicine.

Mylan, which has raised the US price for a pack of two EpiPens from less than $100 when it acquired the product in 2007 to more than $600, also faces scrutiny from USA lawmakers and an investigation by New York Attorney General Eric Schneiderman over the EpiPen.

Drug companies pay different levels of rebates to BMS depending on whether a medication is considered an “innovator” or a “non-innovator”. A probe into EpiPen pricing by a U.S. Senate subcommittee was also announced on September 7. Not based on the news in any given day, the rating may differ from Jim Cramer’s view or that of this articles’s author. When Mylan bought the drug in 2007, the price for a pack was around $100. This is driven by some important positives, which it believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers. The team feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.