EpiPen auto-injector syringe EpiPen auto-injector syringe (Photo: Roel Smart)

A pharmaceutical company has paid the state of Georgia $7 million to settle claims it underpaid rebates to the Medicaid program for the popular allergy drug EpiPen, Attorney General Chris Carr announced Friday.

Pennsylvania-based Mylan makes the injectable drug that contains epinephrine, a chemical that narrows blood vessels and opens airways in the lungs. It’s used to counter severe allergic reactions. A company spokesperson could not be reached for an immediate response.

“Mylan knowingly misrepresented this drug in order to underpay on rebates and make a profit at the expense of our state and others,” Carr said in the news release. “The Georgia Medicaid Fraud Control Unit is prepared to work with nationwide partners to investigate and hold accountable companies that receive payments from taxpayer-funded programs. I am proud of their work and proud that this settlement will bring critical funds back to our state and those who rely on the Medicaid program.”

Mylan agreed to pay $465 million to the United States and the states. The states will share $213,936,000 of the total settlement. As part of the settlement, the state of Georgia received $7,128,069.28 in restitution and other recovery, Carr said.

The settlement resolves allegations that from July 29, 2010 to March 31, 2017, Mylan submitted false statements to the Centers for Medicare and Medicaid Services that incorrectly classified EpiPen, Carr said. As a result, Carr said Mylan submitted or caused to be submitted false statements relating to EpiPen for Medicaid rebate purposes, and underpaid its EpiPen rebates.

The settlement with the United States also resolves allegations that Mylan Specialty overcharged certain entities for the drug, Carr said.