The House Oversight Committee took aim at Mylan’s chief executive Heather Bresch, asking her to explain the skyrocketing cost of an essential tool for preventing someone from going into anaphylactic shock from an allergic reaction.
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Outraged Republican and Democratic lawmakers overnight grilled the head of pharmaceutical company Mylan about the significant cost increase of its life-saving EpiPens and the profits for a company with sales in excess of $US11 billion $NZ15 billion.
Jason Chaffetz, a Republican from Utah, suggested a generic version would actually make more for Mylan because the company plans to sell it directly to customers.
Bresch has been back-peddling for weeks following complaints from Democratic presidential nominee Hillary Clinton, lawmakers and consumer groups about a marketing strategy that drove up the list price of the two-pack almost six-fold since 2007, from $100 to $600. He says Americans have a right to know how much Mylan executives are making off what he calls “exorbitant prices”. Lawmakers also took aim at the EpiPen’s significance to Mylan’s business and the extravagant growth of Bresch and other top company executives’ compensation.
She also noted that the company is offering $300 savings cards for patients who have to pay full price, adding that Mylan “listened and focused on this issue and came up with a sustainable solution”.
Several members of Congress expressed dismay at Bresch’s salary, which increased 67 percent to $18.9 million in 2015.
Bresch, daughter of Sen.
“In the complicated world of pharmaceutical pricing, there is something known as the ‘Wholesale Acquisition Cost, ‘ or WAC”, she said.
The CEO also asserted that the EpiPen had competition throughout the course of the yearslong price hikes, though lawmakers pressed her on whether the product’s near-dominance in the market could be classified that way.
Duncan, like other Republicans, said the free market is not working in this case because Mylan has a virtual monopoly over auto-injected epinephrine.
Bresch said cheaper products developed by the company have save the country $180 million.
“I was struck by what humanitarians you people of Mylan are”, said Rep. Gerry Connolly (D-Va.). Since acquiring the product in late 2007, Mylan has raised the list price 548% to almost $609.
“You’ve lobbied us to make the taxpayer buy your stuff”.
“Many people incorrectly assume we make $600 off each EpiPen”.
Mylan called the news report factually inaccurate, and in a statement, Manchin said, “My only concern and motivation was, and always will be, how we can protect as many children as possible”.
“This unprecedented move is the fastest and most direct way to reduce the price for all patients”, she said. Bresch says the company makes only $50 in profit on each EpiPen. That brought in sales of almost $US1.7 billion ($NZ2.3 billion) for Mylan, though the company says it receives about $1.1 billion ($NZ1.5 billion) after rebates and fees paid to insurers, distributors and other health care businesses.
Rep. Mick Mulvaney (R-S.C.) scolded Bresch as getting what she deserved during the combative hearing.
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Mylan CEO Heather Bresch is sworn in on Capitol Hill in Washington, Wednesday, Sept. 21, 2016, prior to testifying before the House Oversight Committee hearing on EpiPen price increases. The shots now cost about $600 for a two-pack, and the vast majority of states now require or encourage schools to stock epinephrine devices. That will still bring Mylan tens of millions of dollars in revenue while helping retain market share against current and future brand-name and generic competition. The coupons insulate patients from the price hikes, but insurance companies, employers and taxpayers must still pay more for the rest of the bill for the drug.
