Mylan evidently subscribes to a “living in the gray” mentality when it comes to business operations.

The generics and specialty pharma company has made a series of legal yet ethically contentious moves in recent years, most famously hiking the price of its EpiPen autoinjector by 400 percent.

That particular scandal was met with much public outcry — along with a dedicated hearing in front of the House Oversight and Government Reform Committee. But all the while, Mylan had a separate scheme running in the background.

On Wednesday, Reuters reported that the company owns a 99 percent stake in five U.S. companies that work to reduce smog emissions from the fuel. It began purchasing the shares back in 2011. A Mylan spokesperson confirmed that the publication’s figures were accurate.

Coal and pharmaceuticals don’t exactly scream ‘synergies,’ so why on Earth would Mylan invest its dollars in that direction?

According to Reuters’ analysis, Mylan has quietly generated hundreds of millions of dollars of tax credits, under Section 45 of the Internal Revenue Code. Established in 2004, the initiative was designed to encourage private capital investment in clean energy.

To qualify for the credit, the refined coal must emit fewer emissions than regular coal when burned. That means a reduction in nitrogen oxide levels of at least 20 percent and a 40 percent or greater cut in emissions of either sulfur dioxide or mercury. 

A Mylan spokeswoman confirmed the company made use of the tax credits, noting that other companies with no natural ties to the energy industry have also capitalized on the program.

“The law adopted by Congress does not limit who can benefit as long as the refined coal is produced. Companies involved in such projects range across a variety of non-energy-related sectors,” she wrote via email. “We believe other companies utilizing these credits at some point include Goldman Sachs and Fidelity.”

According to Reuters, few public companies have used the tax credits and, based on a review of SEC filings, it appears that no other publicly-traded pharmaceutical maker has to any significant degree.

Mylan, understandably, hasn’t advertised the fact that it strayed outside its field to lower its tax burden. The holdings appear as “clean energy investments”  in the company’s earnings statements, with little explanation. 

On the other hand, it’s not out of character. The company has been creatively maximizing its profits in a number of ways.

In 2015, it finalized its acquisition of Netherlands-based Abbott Laboratories. It subsequently moved its headquarters to that country (i.e. underwent an inversion), dropping its U.S. tax rate substantially.

Mylan’s management has also taken a lot of heat over its executive compensation packages, particularly from company stakeholders. On Thursday, those shareholders voted against the existing compensation policy but still allowed for the reelection of the board.

For good measure, a separate story was also published in STAT News on Thursday. According to email correspondence obtained by STAT, Mylan offered EpiPen rebates to at least six state Medicaid programs on the condition that the states would make it harder for Medicaid patients to obtain competing anti-anaphylaxis products.

It’s all shady behavior, but there is a silver lining — at least with the coal tax credits. According to the company spokeswoman:

“About 16 million tons of refined coal has been produced annually for Mylan to earn the amount of credits it has in the last few years.”

Pretty impressive for a side gig.

Photo: StockFinland, Getty Images