Mylan CEO misrepresents EpiPen profits in testimony
Mylan Chief Executive Heather Bresch’s assertion last week that the company made only $50 in profit on each EpiPen was off the mark.
The actual profit was $83 per pen — 66 percent more than the drugmaker’s leader told a House Committee on Oversight.
Mylan conceded the mistake in a regulatory filing on Monday that included an EpiPen “profitability analysis,” blaming the error in Bresch’s testimony on its inclusion of a 37.5 percent tax rate.
The company told the Wall Street Journal, which forced Mylan’s retraction, that the inclusion of taxes was standard for profitability analyses like the one Bresch presented to Congress.
Yet even that seemed disingenuous, considering Mylan had a 7.4 percent corporate tax rate last year and a negative-effective tax rate in the US.
The ultra-low tax rates were largely a function of Mylan’s incorporating in the Netherlands last year, despite the company maintaining its headquarters in Canonsburg, Pa.
Mylan acquired EpiPen — an injector of potentially life-saving epinephrine to counter allergic reactions — in 2007. It has since taken the price for a two-pack from $100 to more than $600.
Mylan controls more than 90 percent of the market
Bresch made $18 million last year.
Heather Bresch
From Wikipedia, the free encyclopedia
| Heather Manchin Bresch | |
|---|---|
Heather Bresch testifying before the United States House Committee on Energy and Commerce in 2012.
| |
| Born | Heather Manchin June 27, 1969 [1] |
| Residence | Sewickley Heights, Pennsylvania[2] |
| Nationality | American |
| Other names | Heather Kirby[3] |
| Alma mater | West Virginia University (B.A., 1991) |
| Occupation | Chief executive officer |
| Spouse(s) | Jeffrey J. Bresch (married) Douglas Kirby (divorced) |
| Children | 4 |
| Family | Joe Manchin (father) Gayle Manchin (mother) |
Heather Bresch (née Manchin, born circa 1969)[4] is an American business executive and the daughter of Democratic U.S. Senator Joe Manchin. In 1992 she started working as a clerk in a factory owned by Mylan, a pharmaceuticals company, a job her father found for her. In 2007 she was accused of inflating her resume by claiming an unearned MBA degree that was given to her by West Virginia University's president, Michael Garrison, a politician, a friend of her father and a former lobbyist for and consultant to Mylan. She became the Chief Executive Officer of Mylan in 2012. She was named one of Fortune Magazine's "50 Most Powerful Women In Business" in 2014. In 2016 Mylan became embroiled in controversy after having raised the price of one of its products, the EpiPen, by nearly 500 percent since 2009.[5]
Contents
[hide]Early life and education
Bresch grew up in Fairmont and Farmington, West Virginia in a Roman Catholic family of partial Italian descent.[6] Her father, Joe Manchin, was a prominent politician throughout her childhood and as of 2015 was the senior United States Senator from West Virginia.[4]
Bresch attended Fairmont Senior High School in Fairmont, West Virginia[7] and graduated from West Virginia University (WVU) in 1991 with a bachelor's degree in political science and international relations.[8]
MBA controversy
Main article: West Virginia University M.B.A. controversy
In 2007 there was a controversy over an unearned MBA degree that Bresch had been claiming on her resume at that time. The Pittsburgh Post-Gazette reported that Bresch had claimed to have an MBA degree from West Virginia University, but the university disputed that.[9] The university subsequently awarded her an EMBA despite her having completed only 26 of the required 48 credits. Her father was governor of the state of West Virginia at the time.[10]
In the ensuing controversy, the university announced in April 2008 that it would rescind Bresch's degree. Michael Garrison, WVU President at the time, was reported to be "a family friend and former business associate of Bresch"[11] and a former consultant and lobbyist for Mylan.[9]After a faculty vote of no confidence, Garrison and several university officials subsequently resigned.[10][12]
No comments:
Post a Comment