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Mylan Execs Probably Won’t Lose Any Money Over the Massive EpiPen Settlement

October 27, 2016, 9:18 PM UTC
House Oversight Committee Holds Hearing On Rising Price Of EpiPens With Mylan Inc. CEO Heather Bresch
WASHINGTON, DC - SEPTEMBER 21: Mylan Inc. CEO Heather Bresch holds up a 2-pack of EpiPen as she testifies during a hearing before the House Oversight and Government Reform Committee September 21, 2016 on Capitol Hill in Washington, DC. The committee held a hearing on "Reviewing the Rising Price of EpiPens." (Photo by Alex Wong/Getty Images)
Alex Wong—Getty Images

Pharma giant Mylan has gotten considerable flak for raising the price of the life-saving EpiPen device more than 500% over the course of a decade. It even settled a lawsuit with the U.S. government for $465 million over overcharging Medicaid, the public health program for low-income individuals. But it doesn’t look like the massive legal payout will affect the company’s top executives.

Had the cost of the settlement been incorporated into Mylan’s adjusted earnings, officials like CEO Heather Bresch would have taken big haircuts in their bonuses, according to the Wall Street Journal. But Mylan’s way of reporting earnings doesn’t actually take such costs into account.

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That’s not exactly an uncommon tactic. But the fact that a millions-dollar settlement, which is nearly half the yearly sales for the EpiPen (by far Mylan’s best-selling and most profitable product), won’t affect executive bonuses is raising some eyebrows.

Fortune has reached out to Mylan for comment on its executive compensation and accounting practices, and will update this post if it responds. But the firm has defended itself by saying that the settlement doesn’t include any definitive evidence of wrongdoing.


That said, it may come as no surprised that Mylan officials don’t appear to be headed for a pay cut at all. Bresch herself told a Congressional committee that she thought the EpiPen’s price hikes were “fair,” and that the company’s various arrangements with state agencies were above board. Not to mention, Bresch pointed out, Mylan has bolstered its patient assistance program and pledged to introduce a lower-priced generic in the wake of the price hike controversy.

Lawmakers appear a bit more skeptical. In fact, Senate Republicans have called for more probes into Mylan’s Medicaid rebates for the EpiPen, and whether or not the company misclassified its product in order to pad its bottom line.