Mylan Resolves Longstanding Dispute with DOJ Regarding Certain Medicaid Rebate Classifications from 2000 Through 2004

Mon, 10/19/2009 - 7:26am
Mylan Inc. today announced that two of its subsidiaries have resolved a longstanding dispute with the U.S. Department of Justice relating to certain Medicaid rebate classifications. Mylan's subsidiaries Mylan Pharmaceuticals Inc. and UDL Laboratories Inc. settled civil claims first brought to Mylan's attention in 2005. The settlement of approximately $121 million resolves claims by the federal government, relevant states and a private relator and includes no admission or finding of wrongdoing on the part of either Mylan Pharmaceuticals or UDL Laboratories. The underlying matter involved a dispute as to whether, for purposes of Medicaid rebates, an authorized generic is subject to the generic rate that Mylan paid on sales from 2000 through 2004, or a higher innovator rate. In this matter, the settlement includes products supplied by third party innovators to Mylan for sale as generics. Mylan intends to seek recovery of a substantial portion of the settlement amount from any party that received overpayments resulting from adjusted net sales during the relevant time frame. Mylan will record a one time, non-recurring after-tax charge of approximately $83 million in the quarter ended Sept. 30 as a result of this settlement.

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