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Mylan faces lawsuit over EpiPen pricing

A group of EpiPen buyers slapped Mylan NV with a national class-action lawsuit over the dramatic price increase of its emergency allergy injector EpiPen.

The lawsuit, filed in the U.S. District Court for Western District of Washington by Hagens Berman Sobol Shapiro LLP, accuses Mylan of engaging in a "behind-the-scenes quid pro quo arrangement." This agreement purportedly exploited the drug-pricing system to reap higher profits for the company and other players, such as pharmacy benefit managers.

The complaint noted EpiPen's price increase to $608.62 from $90.28 ever since Mylan obtained the marketing and distribution rights to the drug in 2007.

Furthermore, Mylan allegedly failed to disclose until the summer of 2016, that payment of rebates to pharmacy benefit manufacturers was the reason behind the increases in the price list for EpiPens.

The lawsuit also stated that other auto-injectors made by some companies were withdrawn from the market because PBMs did not place the drug on formularies. According to the lawsuit, Mylan's actions constitute a Racketeer Influenced and Corrupt Organization enterprise, violating the antiracketeering law and various state consumer-protection laws.

The suit aims to represent a nationwide class of EpiPen consumers who bought the product at high prices, to reclaim economic losses in an amount that is yet to be determined in a trial and to put in place an injunction halting this behavior.