The news for Mylan keeps getting worse. U.S. government health plans spent more than $1 billion on Mylan NV’s EpiPen emergency allergic reaction treatment between 2011 and 2015, according to figures released by the Centers for Medicare and Medicaid Services on Wednesday. Lawmakers contend that Mylan underpaid rebates to state Medicaid programs by misclassifying EpiPen as a generic instead of a branded drug. The Medicaid rebate for a generic is 13 percent compared with a minimum 23.1 percent for a branded drug.
After rebates, net Medicaid spending over this five-year period was approximately $797 million, reflecting a rebate of 13 percent,” the Centers for Medicare and Medicaid Services (CMS) said in a letter sent to lawmakers on Wednesday.
Now would be a good time to fire the CEO and company top executives, apologize (beg) for being greedy and hire a new CEO who can, lead, but more importantly reinstall a sense of pride for the employees who work for Mylan. The pharma industry desperately needs to show the public that CEO’s like Mylan’s, have no place in our industry.
Pharma cannot reward CEO’s just on balance sheet numbers. That creates a culture of sale over patients and leads to lapses in judgement. Pharma CEO’s have to be aware that the strategy of raking in money with high priced drugs is going to be challenged on every level and it could lead to more industry scrutinization which could in turn lead to more voices asking for a single payer system.
Ms Bresch has failed as an effective leader and in the process has made herself very wealthy. If there was a way to terminate her without any compensation it should be done but alas here in the U.S. CEO’s get rewarded for failure.