Mylan’s EpiPen Pretax Profits 60% Higher Than Number Told to Congress

Wall Street Journal ^ | September 26, 2016 | Mark Maremont

[wtd]

• Mylan’s EpiPen Pretax Profits 60% Higher Than Number Told to Congress

  Company applied 37.5% tax rate onto the profits it revealed to a House committee hearing last week

  Mylan CEO Heather Bresch takes her seat on Capitol Hill in Washington on Wednesday prior to testifying before the House Oversight Committee hearing on EpiPen price increases. Photo: Pablo Martinez Monsivais/Associated Press ">

  Mylan NV on Monday clarified the profit it said it made from its lifesaving EpiPen drug, days after House members badgered the company’s chief executive to justify the device’s steep price increases.

  Testifying before a congressional committee last week, CEO Heather Bresch said Mylan’s profit was $100 for a two-pack of the injectors, despite a $608 list price. Her claim was met with skepticism.

  In response to questions from The Wall Street Journal, Mylan said Monday that the profit figure presented by Ms. Bresch included taxes, which the company didn’t clearly convey to Congress. The company substantially reduced its calculation of EpiPen profits by applying the statutory U.S. corporate tax rate of 37.5%—five times Mylan’s overall tax rate last year.

[Attention Surplus Disorder]

So this is being implied as a lie?

There are pre-tax profits, there are post tax profits. If you make $100 pre-tax and pay 37.5% in tax eg; walk away with $62.50, then yes, exactly, $100 is 160% of $62.50.

If Congress didn’t clarify this to their satisfaction then they didn’t.

I’m as appalled by the egregious price rise in this product as anyone, but the lesson to be learned is the government paying for most of these items with ever decreasing rates of reimbursement to the supplier permits and encourages largely unchecked price hikes.

[ptsal]

The honcho is a lawyer and daughter of a U.S. Senator...truth is only available as a last alternative.....after you are caught.

[NorthstarMom]

My son’s new allergist showed me how to order meds from Canada. The savings are tremendous. Don’t know if Epipens are available as he no longer needs them.

[txrefugee]

Lying to Congress is a felony. Lock her up, even if she is Sen. Joe Manchin’s (D-WV) daughter.

[Roccus]

If Congress didn’t clarify this to their satisfaction then they didn’t.

The ass-wipe politicians got what they wanted, their face time. They were able to flaunt their faux outrage (they really couldn't give a damn) for the cameras and now they can go home and tell their constituents, "See, I'm fighting for you!" They had no idea of what questions to ask or how to follow-up on the BS answers from that phony MBA, Bresch.

Just another bullshit Congressional dog and pony show.

[libertylover]

It is illegal to make a profit?

[wtd]

No...but price gouging is. The hearing was called to determine the reason behind the as yet unjustified sudden and whopping increase in price.

[libertylover]

No, the hearing was called to intimidate the company into changing their asking price but they should be able to ask anything they want for their product. You can choose whether or not to pay the price. It’s called liberty-see screen name.

[wtd]

Price gouging is not liberty. Period.