The rising cost has made it hard for many families to afford EpiPens, prompting a public outcry that has resonated with legislators.
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Mylan CEO Heather Bresch told the House Oversight and Government Reform Committee that she wishes the company had “better anticipated the magnitude and acceleration” of the rising prices for some families. Bresch defended the cost.
Bresch emphasized that in the eight years Mylan has owned EpiPen, the company has invested to improve the product and access to it, estimating the total investment at more than $1 billion.
Mylan, maker of the Epipen, answered to accusations of price gouging from a House Oversight Committee as CEO Heather Bresch took the stand Wednesday.
Mylan pays back much of the list price, $274, in the form of rebates and fees, the CEO says.
More than 450 Iowans reached out to Senator Chuck Grassley after EpiPen maker Mylan raised prices from almost $100 to more than $600.
In a rare showing of unity, lawmakers on both sides of the aisle strongly criticized Mylan’s actions.
Jason Chaffetz (R-Utah), chairman of the House Committee on Oversight and Government Reform, held up an EpiPen up to punctuate his opening remarks, repeatedly making the point that epinephrine – “the juice” inside the device – costs roughly $1.
The frustration was bipartisan.
The committee has “price gouging” pharmaceutical companies firmly in its sights, having previously grilled former hedge fund manager turned pharmaceutical boss Martin Shrekli, dubbed “the world’s most hated man” after he jacked up the price of a HIV-related drug by 5,000%.
“The misconception about our profits is understandable, and at least partly due to the complex environment in which pharmaceutical prices are determined”, Bresch said.
“I think many people incorrectly assume we make $600 off each EpiPen”, Bresch plans to say.
Parents who rely on multiple EpiPens to respond when their children have allergic reactions, whether at home or at sporting events, have lashed out at Mylan in growing public outcry.
The blame, Bresch argued (and not for the first time), largely lay with the shifting health insurance landscape.
“Sounds like you’re doing pretty well on this”, said Rep. John Mica, R-Fla.
The EpiPen price increases ignited a national controversy in August following complaints by families.
“You have five executives, in five years, that earned almost $300 million in compensation”, he said.
“This is why we don’t believe you”, Chaffetz said. “No one here has any clue if you’re charging too much or too little”, he said, referencing the complexity of the pricing system.
Bresch said during testimony that Mylan has 94 percent of the market share for sales of auto-injection devices containing epinephrine, the drug that counteracts the potentially fatal allergic reaction known as anaphylaxis.
Bresch, the daughter of Democratic West Virginia Sen. Joe Manchin, D-W.Va. But lawmakers so far haven’t given any deference to her, and several other committees have called for investigations into the price increase.
While Bresch pointed to Mylan’s response in expanding its patient assistance program (PAP) and its “unprecedented” step to offer an authorized generic at a 50 percent discount, lawmakers countered with her almost $19 million salary and the fact that the Epipen generates 9 percent of the profit for a company that markets 2,700 different products.
Mylan has attempted to mollify angry consumers by offering more financial aid to patients, including coupons covering up to $300 of a patient’s co-payment. “If you want to come into Washington, if you want to come into state capitals, and lobby us to make us buy your stuff, this is what you get”.
“A mother would cut off her right arm to get that drug”.
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“If it was not for an EpiPen, I would have died at a young age”, said junior marketing major Lacey Alleruzzo, adding that her allergy to bees relies on the use of an EpiPen. “But then, is there a price on my child’s life because they need this medication in order to survive?” said Myer.
