US lawmakers on Wednesday blasted steep price increases forMylan’s EpiPen emergency allergy treatment as they grilled the company’s Chief Executive Heather Bresch at a congressional hearing.
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The company’s CEO, Heather Bresch, was called in front of Congress to testify about the steep price increases of EpiPens. Bresch’s pricing explanation failed to impress the committee, with some members calling the price hike “disgusting” and a “blatant disrespect” for American families who do not have discount options for the pens.
“Yet another drug company, Mylan, has jacked up the price of a lifesaving product for no discernible reason”, Representative Elijah Cummings, a Democrat from Maryland, told Bresch as the hearing opened.
Mylan paired the price increases with an aggressive marketing campaign emphasizing the dangers posed by a severe allergic reaction, which Bresch characterized in the hearing as a public service raising awareness about anaphylaxis.
“They’re here to tell us they make about $50 profit”, Chaffetz said in his opening remarks. Cummings asked, clearly frustrated that Mylan had not provided documents to answer the question and requesting that Bresch furnish the information to the committee.
Mr. Chaffetz offered little sympathy for Mylan’s bottom line, pointing to generous pay for Mylan’s executives.
Mylan NV CEO Heather Bresch took the hot seat before the House Oversight and Government Reform Committee to answer for EpiPen’s steadily increasing price since Mylan acquired it in 2007.
“I truly believe the story got ahead of the facts”, Bresch said. Duncan said the lack of a free drug/device market is primarily the fault of the FDA, which has made it nearly impossible for a small company to get a drug or device to market.
As Mylan raised the price of EpiPen, it also helped push policies to have schools stock the shot, which is now the dominant epinephrine auto-injector in the U.S. In addition, it has led campaigns to raise awareness of unsafe allergic reactions and to get parents and children to carry EpiPen for rapid use.
Last year, more than 3.6 million US prescriptions for two-packs of EpiPens were filled, according to data firm IMS Health.
“Our goal is to work together to ensure that critical medications, like the EpiPen, are accessible and affordable for all of our constituents”, Chaffetz and Cummings said in a joint statement last week.
Bresch’s family-related problems were further compounded this week when USA Today reported that her mother, Gayle Manchin, spearheaded a successful effort to encourage states to require schools to purchase EpiPens while her daughter led the company producing them. Joe Manchin, D-W.Va., played in promoting the EpiPen while serving as president of the National Association of State Boards of Education. Several other committees have called for investigations into the matter.
EpiPens are devices for injecting epinephrine during emergencies when a patient is experiencing a serious allergic reaction.
When lawmakers asked if Mylan would cut the cost of its best-selling product, Bresch pivoted instead to a planned generic version she said will be marketed at $300.
Critics have pointed out that Mylan ultimately profits even more by providing a generic version of their drug because it will allow the company to keep its market share against current drugs or any new ones that enter the market, including generics.
Coupons available through the company’s brand savings program have increased from $100 to $300, Bresch said. “I know there is considerable concern and skepticism about the pricing”, she said.
The drug company that makes the EpiPen says it isn’t almost as profitable as many people assume it is. She says other, unnamed costs absorb an additional $105, leaving $100 in profit for the company.
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Republicans on the Senate finance committee, including Sen.
