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Mylan Lowers Price of EpiPen After Backlash
Mylan NV has said it will reduce the out-of-pocket cost of its severe allergy treatment EpiPen––an epinephrine autoinjector––through a discount program, according to a Reuters report. The announcement came one day after Democratic presidential candidate Hillary Clinton joined lawmakers in criticizing the drug’s high price.
Mylan did not lower the drug’s list price, but said it would reduce the patient’s cost of the EpiPen through the use of a savings card, which will cover up to $300 on an EpiPen 2-Pak. The card effectively reduces patients’ out-of-pocket cost exposure by 50%, the company said.
The price of the EpiPen, which Mylan acquired in 2007, has skyrocketed to $600 from $100 in 2008. Even if patients use the 50% discount card, the product’s price has still tripled since Mylan began marketing it.
In a letter to the Federal Trade Commission, Senator Amy Klobuchar (D-Minnesota) wrote: “There does not appear to be any justification for the continual price increases of EpiPen. Manufacturing costs for the product have been stable and Mylan does not need to recover the product’s research and development costs because the product was on the market years before Mylan acquired it in 2007.”
In related news, the Huffington Post reported that, as Mylan hiked the price of the EpiPen, company executives received hefty pay boosts. From 2007 to 2015, the company’s stock price more than tripled, and the compensation of CEO Heather Bresch increased from $2.5 million to $18.9 million. Mylan President Rajiv Malik’s base pay increased 11% to $1 million in 2015, and Anthony Mauro, the company’s chief commercial officer, got a 14% increase in base pay, to $625,000.
Sources: Reuters; August 25, 2016; and Huffington Post; August 24, 2016.