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Mylan's EpiPen profit was 60% higher than what the CEO told Congress
Source: Washington Post via LAT
Mylan's EpiPen profit was 60% higher than what the CEO told Congress
By Carolyn Y. Johnson
The Washington Post
SEPTEMBER 26, 2016, 10:40 AM
Lawmakers were skeptical last week when Mylan’s chief executive said that the company made only $100 in profit for a two-pack of EpiPens. During a House hearing, she repeatedly referred to a poster board showing how little of the $608 list price trickled back to the company.
The incredulity was warranted: The profit CEO Heather Bresch told Congress about was calculated after factoring in the 37.5% U.S. tax rate, according to a filing with the Securities and Exchange Commission first reported by the Wall Street Journal.
That tax rate is more than five times the overall tax rate the company actually paid last year and is much higher than its actual U.S. tax rate, which tax specialists have pegged at close to zero.
Before taxes, the EpiPen profit is actually $160 for a two-pack. At the hearing, Bresch said the company sold about 4 million two-packs a year. The device delivers an antidote to potentially deadly allergic reactions.
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By Carolyn Y. Johnson
The Washington Post
SEPTEMBER 26, 2016, 10:40 AM
Lawmakers were skeptical last week when Mylan’s chief executive said that the company made only $100 in profit for a two-pack of EpiPens. During a House hearing, she repeatedly referred to a poster board showing how little of the $608 list price trickled back to the company.
The incredulity was warranted: The profit CEO Heather Bresch told Congress about was calculated after factoring in the 37.5% U.S. tax rate, according to a filing with the Securities and Exchange Commission first reported by the Wall Street Journal.
That tax rate is more than five times the overall tax rate the company actually paid last year and is much higher than its actual U.S. tax rate, which tax specialists have pegged at close to zero.
Before taxes, the EpiPen profit is actually $160 for a two-pack. At the hearing, Bresch said the company sold about 4 million two-packs a year. The device delivers an antidote to potentially deadly allergic reactions.
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Read more: http://www.latimes.com/business/la-fi-mylan-epipen-profit-20160926-snap-story.html
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