NEW YORK (TheStreet) -- Shares of Mylan (MYL) - Get Report were lower in late-morning trading on Monday after the company said its EpiPen pretax profits are 60% higher than it told Congress, the Wall Street Journal reports.
Last week, CEO Heather Bresch testified before the House Oversight and Government Reform Committee about the high price hikes on its EpiPen injectable drug for life-threatening allergies.
House members pressed Bresh to provide more evidence for Mylan's claim that its profits were $100 for a two-pack of EpiPens even though the list price is $608, the Journal noted.
In response to questions from the newspaper, the pharmaceutical company now says the $100 figure presented by Bresch included taxes, which was not clearly conveyed to Congress.
Mylan substantially lowered its calculation of EpiPen profits by applying the statutory U.S. tax rate of 37.5%, the Journal added.
Without the tax-related reduction, the company's profits on the EpiPen two-pack would be near $160, which is 60% higher than the number Mylan told Congress, the newspaper noted.
The company sells about 4.1 million EpiPen two-packs in the U.S., according to analysts.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on Mylan stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MYL