North Carolina Attorney General Jeff Jackson secured an $11 million settlement against Mylan, now operating as pharmaceutical giant Viatris. The deal resolves longstanding allegations of EpiPen price manipulation and anti-competitive market conduct. Both North Carolina Medicaid and the state health plan stand to gain significantly from this legal victory.
Overview of the EpiPen Settlement
Attorney General Jackson announced the settlement on April 30. His office confirmed that Mylan had engaged in practices that drove up EpiPen costs for years. The settlement holds the company financially accountable for those actions. Furthermore, it returns millions of dollars to public health programs serving North Carolina residents.
Mylan managed the marketing and distribution of EpiPen Auto-Injectors across the United States. As such, the company controlled a critical segment of the emergency allergy treatment market. This control, prosecutors argued, allowed Mylan to inflate prices without fear of competition.
How EpiPen Prices Skyrocketed
EpiPen pricing tells a troubling story of unchecked market power. In 2007, a two-pack of EpiPens cost consumers roughly $100. By 2016, that same two-pack carried a price tag of approximately $600. That represents a 500% price increase in less than a decade.
“They used their control of the market to keep competitors out and drive the price up,” Attorney General Jackson stated. “That’s not legal. We made them pay it back.”
This dramatic price surge drew national attention at the time. Families, schools, and employers dependent on EpiPens faced impossible choices. Meanwhile, Mylan reportedly blocked rival products from entering the market, reducing consumer options and keeping prices elevated.
What North Carolina Receives
Under the settlement terms, two key programs each receive $4.2 million. North Carolina Medicaid gets its share directly. Additionally, the state health plan receives an equal amount.
The state health plan covers more than 750,000 people. Beneficiaries include state workers, retirees, and their dependents. Together, these funds will help offset the excess costs these programs absorbed during the years of inflated EpiPen pricing.
Anti-Competitive Conduct Explained
The settlement resolves two main categories of alleged misconduct. First, prosecutors alleged that Mylan pursued anti-competitive strategies. These tactics effectively blocked rival manufacturers from gaining market access. As a result, consumers had no affordable alternatives.
Second, the state alleged that Mylan misclassified EpiPen under the Medicaid Drug Rebate Program. This misclassification reduced the rebates owed to Medicaid. Consequently, the government paid more than it should have for the product over several years.
Together, both practices worked against public health programs and the patients they serve.
Viatris Responds to Allegations
Viatris, the company formed after Mylan’s merger, issued a measured statement following the announcement. A company spokesperson noted that the resolution covers events from more than a decade ago. Moreover, Viatris denied any wrongdoing.
“The company continues to deny the state’s allegations and maintains that it acted lawfully,” the spokesperson said. “However, we believe that it is in the company’s best interest to have resolved this matter in order to avoid the burden and expense of litigation.”
Viatris also clarified that the settlement carries no admission of liability. The company expressed its intention to continue engaging with North Carolina through its affordability programs going forward.
Impact on EpiPen Affordability
Beyond the monetary settlement, Viatris agreed to expand its copay assistance program. The company will raise its copay coupon for the authorized generic version of EpiPen from $25 to $40. This increase aims to provide modest relief to patients purchasing the device out of pocket.
However, advocates note that broader structural change in drug pricing remains necessary. The EpiPen case is not an isolated example. Drug pricing controversies continue to shape the debate around healthcare affordability across the United States.
What This Means for Patients
This settlement sends a clear signal to pharmaceutical companies. Regulators and state attorneys general are actively pursuing cases of alleged price manipulation. Consequently, companies face greater risk when they pursue strategies that harm public programs and patients.
For North Carolina residents, the settlement delivers both financial restitution and symbolic accountability. It reinforces the principle that market power must come with responsibility. Moving forward, the funds recovered will support Medicaid and state employees who bore the burden of inflated EpiPen costs.
