Connecticut has reached an $8 million settlement agreement with pharmaceutical company Mylan to resolve claims it illegally inflated prices for EpiPens, which deliver life-saving medicine during severe allergic reactions.
Attorney General William Tong, the state Department of Consumer Protection and state Department of Public Health announced the settlement on Thursday.
Mylan will pay Connecticut $8 million and provide the state with 10,000 free EpiPens in the form of 5,000 two-packs.
According to Tong, Mylan in 2016 faced widespread criticism following a price increase of around 400 percent. Mylan also faced claims it entered into unlawful "pay-for-delay" agreements with competitors to delay generic, less-expensive, versions of epinephrine auto-injectors.
Without competition, Mylan then "dramatically raised prices," and lobbied lawmakers nationwide to require schools to have epinephrine auto-injectors on-hand, to increase Mylan's sales, according to Tong. The Attorney General's office also said the company switched from single EpiPen packages to exclusively offering twin packs, forcing consumers to pay more, resulting in increased company revenue.
As part of the settlement, Mylan denies wrongdoing.
Tong asserted the company "abused its monopoly to jack up prices on its lifesaving, emergency medication."
"Families were crushed with massive costs while Mylan reaped exorbitant profits," Tong said. "This was corporate greed at its worst, and we're holding Mylan accountable."
Department of Consumer Protection Commissioner Bryan T. Cafferelli said low-cost generic alternatives to life-saving medication ensures everyone has access.
"Actively taking steps to prevent generic alternatives and further profit off consumers who need these medications is not only illegal, it's shameful," Cafferelli said.
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