Mylan had hiked the price of EpiPen to maximize profits in anticipation of Teva’s competitor, Udow-Phillips said. “Mylan will continue to offer both – generic and brand – options for patients so that they can work with their healthcare provider to determine the best option for them”, the company said.
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In its latest move to quell outrage over its price increases, the maker of the EpiPen has resorted to an unusual tactic – introducing a generic version of its own product.
Mylan’s CEO released a statement reading in part that the generic will offer a “long-term solution to further reduce costs and ease the burden and complexity of the process on the patient”.
“We all want the product to be made available soon, and we want the price deal to be favorable because what has happened the past six months or so is not right”. To find out how much other drugmakers are doing the same, check out our recent rundown ofprice vs. volume growth among big biotechs.
She notes, “Our decision to launch a generic alternative to EpiPen is an extraordinary commercial response, which required the cooperation of our partner”.
In the wake of mounting criticism over recent price hikes, the company said the generic version will be distributed by its USA subsidiary.
At least two companies are trying to get US approval to sell a rival brand or generic version of EpiPen.
When Mylan first purchased the product in 2007 it was priced at $US50 ($66), but the cost has slowly risen over the years.
The EpiPen is a device used in emergencies to treat anaphylaxis, a severe allergic reaction that can make people go into shock, struggle to breathe, or get a skin rash.
Among the USA lawmakers that criticised Mylan’s actions, Democratic senator Richard Blumenthal said the company, with its latest announcement, may appear to be moving in the right direction, but raises as many questions as solutions, including why the price is still astronomically high and whether its action is a preemptive strike against a competing generic. “It’s a PR move”. This means that a family of four making up to $97,200 would be eligible to pay effectively nothing for an EpiPen. None is likely to hit the USA market until well into next year.
The price of EpiPens has increased dramatically over the past several years.
Numerous members of Congress and other politicians this week have called for congressional hearings on Mylan’s pricing, an investigation by the Federal Trade Commission and action by the Food and Drug Administration to increase competition by speeding up approvals of any rival products.
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Shares of Mylan rose 19 cents to $43.22 in trading Monday, while broader indexes rose.
