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House panel: Mylan CEO disguised profits in EpiPen testimony

FILE - In this Sept. 21, 2016 file photo, EpiPens brought by Mylan CEO Heather Bresch are seen on Capitol Hill in Washington as she testified before the House Oversight Committee hearing on EpiPen price increases. Senators are asking the Justice Department to investigate whether pharmaceutical company Mylan acted illegally when it classified its life-saving EpiPen as a generic drug and qualified for lower rebate payments to states. (AP Photo/Pablo Martinez Monsivais, File) FILE - In this Sept. 21, 2016 file photo, EpiPens brought by Mylan CEO Heather Bresch are seen on Capitol Hill in Washington as she testified before the House Oversight Committee hearing on EpiPen price increases. Senators are asking the Justice Department to investigate whether pharmaceutical company Mylan acted illegally when it classified its life-saving EpiPen as a generic drug and qualified for lower rebate payments to states. (AP Photo/Pablo Martinez Monsivais, File)

By Associated Press October 3, 2016 1 min read

WASHINGTON (AP) – Leaders of the House Oversight Committee want EpiPen maker Mylan to explain why the company’s CEO failed to tell Congress that profit rates the company claimed for the life-saving EpiPen were calculated after taxes.

Mylan CEO Heather Bresch repeatedly told the panel last month that Mylan made just $50 in profit for EpiPens sold for more than $300 apiece. But the lawmakers said in a letter released Monday that the figures Bresch cited were calculated after factoring in the 37.5 percent U.S. tax rate. Before taxes, the EpiPen profit is actually $160 for a two-pack.

Committee Chairman Jason Chaffetz of Utah and Rep. Elijah Cummings of Maryland, the panel’s senior Democrat, said Bresch’s failure to disclose the tax assumptions raised questions about her truthfulness at the Sept. 21 hearing.