Heather Bresch

MBA controversy

In 2007, The Pittsburgh Post-Gazette reported that Bresch had claimed to have an MBA degree from West Virginia University, but the university disputed that. ^[10] The university subsequently awarded her an EMBA despite her having completed only 26 of the required 48 credits. Her father was governor of the state of West Virginia at the time. ^[11]

In the ensuing controversy, the university announced in April 2008 that it would rescind Bresch's degree. Michael Garrison, WVU president at the time, was reported to be "a family friend and former business associate of Bresch" and a former consultant and lobbyist for Mylan. ^{[10] [12]} After a faculty vote of no confidence, Garrison and several university officials subsequently resigned. ^{[11] [13]}

Early work

In 1992, Bresch started working as a clerk in a factory owned by Mylan, a generic drug company, and rose through the company to become the chief executive officer in 2012. ^[14] At a WVU basketball game in 1992, Bresch's father, politician Joe Manchin, mentioned his daughter's job search to Mylan CEO Milan Puskar, and the company soon after offered her a position in the quality control department of a factory in Morgantown, before eventually promoting her to the executive level.

Government relations and advocacy

From 2002 to 2005, Bresch served as Mylan's director of government relations. ^[15] She contributed to the development of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which created Medicare Part D, a prescription-drug benefit. ^[16]

In 2006, Bresch testified before the U.S. Senate Special Committee on Aging to lobby for changes to the law that would prevent pharmaceutical companies from raising challenges to the introduction of generic competitors by filing citizen's petitions with the FDA, and that would prevent pharma companies from undercutting the profits of generic drug companies by making deals for authorized generics to be introduced. ^[17]

When Mylan expanded internationally, Bresch noticed that Mylan's U.S.-based pharmaceutical manufacturing plant had full-time staff from the Food and Drug Administration (FDA) devoted to it, whereas facilities abroad had not been inspected by the FDA for more than a decade. ^[18]

Bresch persuaded several of Mylan's competitors to support what became the Generic Drug User Fee Act, which she proposed to lawmakers in 2010. ^[19] Under the law the generics industry would pay the FDA fees of $300 million to get their drugs approved, and in return the FDA would inspect foreign drug manufacturing facilities at the same rate as U.S-based facilities. ^{[18] [19] [20] [21]} Economic analysis of the Act showed that it increased the cost of some generic drugs and benefitted the largest pharmaceutical companies at the expense of smaller companies. ^[22]

Mylan executive

Bresch has served in several executive roles at Mylan, such as senior vice president of corporate strategic development, ^[23] Head of North American Operations, ^[24] chief operating officer, and chief integration officer. ^{[21] [25]}

Bresch led the integration of Matrix Laboratories Limited and Merck KGaA's generics and specialty pharmaceutical businesses with Mylan's operations. ^[21] She was chair of the Generic Pharmaceutical Association (GPhA) for two terms. ^[26] Bresch was appointed president of Mylan in 2009 ^[21] and joined Mylan's board of directors in March 2011. ^[27]

Bresch's appointment as chief executive officer (CEO) was announced in 2011, and she officially took the position in January 2012. ^[21] Bresch was the first female CEO of a large pharmaceutical business. ^[28] At the time, she was one of 18 female CEOs of a Fortune 500 company. ^[29] After seeing how few female candidates were available for positions that require a background in science and math, she became more interested in promoting math and science education among young girls. ^[30]

Bresch was recognized in Esquire 's 2011 "Patriots of the Year" list for her work pushing for the Food and Drug Administration Safety and Innovation Act (FDASIA). ^[31] She was named one of Fortune magazine's "50 Most Powerful Women In Business" in 2014.

Also in 2014, Bresch and Mylan announced a $5.3 billion acquisition of Abbott Laboratories ^[32] as part of a corporate tax inversion plan to re-organize the company in the Netherlands and move its domicile to a country with lower taxes. ^[33] Bresch said the decision was necessary to "maintain competitiveness against pharmaceutical manufacturers that had already executed similar inversion strategies." ^[31] The company completed the complex tax inversion in February 2015. ^[34] The inversion—which formally resulted in the creation of a new company, Mylan N.V., with 78% of its shares held by former Mylan Inc. shareholders and 22% of its shared held by Abbott Labs shareholders—was expected to immediately drop Mylan's U.S. corporate tax rate to 21% (from 24%) in the first year "and into the high teens over the next three to five years." ^[34] The New York Times said that it was somewhat "disconcerting" for a company that benefits from large government contracts to renounce their citizenship for tax benefits. ^[31] Proxy filings show that from 2007 to 2015, Bresch's compensation rose from $2,453,456 to $18,931,068, a 671% increase in pay. ^{[35] [36]}