The IRS is now go­ing af­ter both Bris­tol My­ers Squibb and Am­gen for dodg­ing bil­lions of dol­lars in tax­es by shift­ing cer­tain prof­its to Ire­land and Puer­to Ri­co, re­spec­tive­ly.

Am­gen re­vealed Wednes­day as part of its first quar­ter earn­ings re­port that ear­li­er this month the com­pa­ny re­ceived a no­tice from the IRS ques­tion­ing its al­lo­ca­tion of prof­its in the US and Puer­to Ri­co be­tween 2010 and 2015, po­ten­tial­ly short-chang­ing Un­cle Sam by more than $7 bil­lion.

“This [IRS] no­tice seeks to in­crease Am­gen’s U.S. tax­able in­come for the 2013-2015 pe­ri­od by an amount that would re­sult in ad­di­tion­al fed­er­al tax of ap­prox­i­mate­ly $5.1 bil­lion, plus in­ter­est. In ad­di­tion, the no­tice pro­pos­es penal­ties of ap­prox­i­mate­ly $2 bil­lion,” the com­pa­ny said in a state­ment, call­ing the penal­ties “whol­ly un­war­rant­ed.”

Ex­ecs said dur­ing Wednes­day’s in­vestor call that the com­pa­ny will vig­or­ous­ly con­test these IRS ad­just­ments in court.

Am­gen al­so said it thinks the to­tal owed is ex­ag­ger­at­ed, ex­plain­ing in a state­ment:

Am­gen be­lieves, based up­on the po­si­tions ad­vanced by the IRS, that the IRS ad­just­ments for the 2010-2015 pe­ri­od are over­stat­ed by ap­prox­i­mate­ly $2 bil­lion due to the IRS fail­ure to ac­count for cer­tain in­come and ex­pens­es. Am­gen has re­port­ed its in­come and ex­pens­es in a con­sis­tent man­ner for many years and the IRS has ap­pro­pri­ate­ly ac­count­ed for the Com­pa­ny’s in­come and ex­pens­es in all pri­or au­dits.

The com­pa­ny al­so said that it “firm­ly be­lieves” that the ad­just­ments and penal­ties pro­posed “are with­out mer­it,” par­tic­u­lar­ly as Puer­to Ri­co is the site of the com­pa­ny’s flag­ship man­u­fac­tur­ing com­plex re­spon­si­ble for the ma­jor­i­ty of Am­gen’s glob­al man­u­fac­tur­ing. And ad­di­tion­al tax­es that could be im­posed for the 2010-2015 pe­ri­od would be re­duced by up to about $3.1 bil­lion of repa­tri­a­tion tax pre­vi­ous­ly ac­crued with re­spect to the com­pa­ny’s Puer­to Ri­co earn­ings, Am­gen said.

The IRS is al­so cur­rent­ly au­dit­ing the 2016-2018 pe­ri­od, and Am­gen said it ex­pects the au­dit to con­tin­ue for sev­er­al years, pos­si­bly for even longer than a res­o­lu­tion is reached on this 2010-2015 dis­pute.

Pre­vi­ous­ly, the IRS went af­ter Bris­tol My­ers for mov­ing prof­its through a sub­sidiary in Ire­land. Ac­cord­ing to a New York Times re­port, BMS al­so con­test­ed the IRS claims, which amount­ed to al­le­ga­tions of cheat­ing the US out of about $1.4 bil­lion in tax­es.

As the House-passed bill to cap the monthly price of insulin at $35 nationwide makes its way for a Senate vote soon, Sanofi announced Wednesday morning that beginning next month it will cut the monthly price of its insulins for uninsured Americans to $35, down from $99 previously.

The announcement from Sanofi, which allows the uninsured to buy one or multiple Sanofi insulins (Lantus, Insulin Glargine U-100, Toujeo, Admelog, and Apidra) at $35 for a 30-day supply effective July 1, follows House passage (232-193) of the monthly cap in March, with just 12 Republicans voting in favor of the measure.

Indian-based generics manufacturer Aurobindo Pharma has been in the crosshairs of the FDA for several years now, but the company is also attracting attention from regulators within the subcontinent.

According to the Indian business news site Business Standard, a warning letter was sent to the company from the Securities Exchange Board of India, or SEBI.

The letter is related to disclosures made by the company on an ongoing FDA audit of the company’s Unit-1 API facility in Hyderabad, India as well as observations made by the US regulator between 2019 and 2022.

Following some backlash from the American College of Cardiology and patients, Bristol Myers Squibb and Pfizer lowered the price of their blockbuster blood thinner Eliquis, thus ensuring that CVS Caremark would cover the drug after 6 months of it being off the major PBM’s formulary.

“Because we secured lower net costs for patients from negotiations with the drug manufacturer, Eliquis will be added back to our template formularies for the commercial segment effective July 1, 2022, and patient choices will be expanded,” CVS Health said in an emailed statement. “Anti-coagulant therapies are among the non-specialty products where we are seeing the fastest cost increases from drug manufacturers and we will continue to push back on unwarranted price increases.”