The drug treatment, which can be a lifesaver for someone experiencing an allergic reaction, is made by Mylan Pharmaceuticals, led by her Manchin’s daughter, Heather Bresch.
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Schneiderman’s investigation in NY, meanwhile, centers on whether Mylan violated antitrust laws in its contracts to provide EpiPens to some school systems. Experts say the devices likely cost less than $30 to make.
EpiPen maker Mylan’s CEO’s connection to the National Association of State Boards of Education may be a part of the shady dealings being investigated by USA lawmakers, including allegations that they defrauded West Virginia’s Medicaid department. According to Morrisey, “Mylan initially agreed to cooperate, but has since failed to respond to the majority of the subpoena”.
“I have a statutory responsibility to investigate any potential antitrust violation”, Morrisey, a Republican official, said written statement. Joe Manchin, D-W.Va., who previously was governor of West Virginia.
The news comes as Congress continues to probe Mylan Pharmaceuticals, the EpiPen’s manufacturer.
Manchin’s wife Gayle Manchin, Bresch’s mother, became head of the National Association of State Boards of Education in 2012.
The policy initiative marked the first time the association directly took measures to address the problem of allergies, despite the fact that the group admitted allergies were a problem as early as the turn of the century.
Eleven states drafted laws requiring epinephrine auto-injectors and almost every other state recommended schools stock them after the “Epipen Law” in 2013 gave funding preference to those who did, according to the article.
A Mylan spokeswoman told CNBC, “We have… demanded a retraction by USA Today”. About 85 percent of patients pay less than $100 for a two-pen pack, she said. “Also, Mylan did not author any anaphylaxis guidelines for NASBE or any other entity”.
In addition to the investigation by the House Oversight committee, at least three senators have also called for investigations into Mylan’s pricing practices.
Currently, generic drugs and their ilk provide rebates starting at 13 percent, while brand name drugs have to pay rebates of 23.1 percent, Business Insider reported.
After the backlash from the price increase, Mylan announced that they will increase the availability of discounts for EpiPen, and make a less expensive generic version. It has defended the device’s high price, saying it spent hundreds of millions of dollars to improve the product and recoups less than half the list price.
One concern among analysts is how fallout over EpiPen pricing will affect Mylan’s roughly $1 billion in annual sales of the device.
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Plus, a new report from the Kaiser Family Foundation could prompt separate questions.
