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

Mylan NV on Monday clarified the profit it said it made from its lifesaving EpiPen drug, days after House members badgered the company’s CEO 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.

But 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.

Read the story here

Wall Street Journal By Mark Maremont