Mylan offers more details on EpiPen’s costs

When Mylan CEO Heather Bresch testified before a U.S. House committee last week that the company’s profit on its EpiPen emergency allergy treatment was only about $50 per pen, several lawmakers appeared incredulous, accusing Ms. Bresch of not being candid and demanding a more detailed breakout of costs.

On Monday, Mylan provided more information in a filing with the U.S. Securities and Exchange Commission showing that in its profit calculations, it had used the statutory U.S. tax rate of 37.5 percent. That’s a much higher rate than the company actually pays, and applying it made the product appear less profitable

According to Mylan’s financial reports, the company’s overall effective tax rate — the rate paid after all deductions — was 18 percent in the first six months of this year and 7 percent in the comparable period last year. For all of 2015, Mylan’s effective tax rate was 7.4 percent.

http://www.post-gazette.com/business/healthcare-business/2016/09/27/Mylan-offers-more-details-on-EpiPen-costs/stories/201609270062