Letter requests detailed financial information on sales, profits, costs, etc.
WASHINGTON, D.C. – Today, House Oversight and Government Reform Committee Chairman Jason Chaffetz (R-UT) and Ranking Member Elijah Cummings (D-MD) announced that they sent a letter to Mylan CEO Heather Bresch requesting information related to the company’s EpiPen profit margins. The letter also outlines other documents Bresch agreed to provide the Committee during a September 21st hearing.
Key excerpts from the letter:
“This week… the Committee learned that your testimony omitted key tax assumptions that affect the company’s profit per pack. Specifically, neither your testimony, nor the documents Mylan produced to the Committee, clearly disclosed that the company’s profit claim was calculated after factoring in the statutory U.S. tax rate—37.5 percent. …
“Failing to disclose tax assumptions that formed the basis for the $100 profit per pack claim, despite opportunities to do so before and during the hearing, raises questions. During the hearing, Chairman Chaffetz noted that Mylan’s ‘dumbed down financials’ did not make sense without explanation. Ranking Member Cummings similarly stated, ‘You know, your numbers don’t add up. … And it is extremely difficult to believe that you are making only $50 profit when you just increased the price by more than $100 per pen.’“
Full text of the letter can be viewed here.