Post by mannmade on Sept 17, 2016 17:06:41 GMT -5
Mylan’s Sneaky EpiPen Maneuvers (MYL, IMMY) By Rebecca Lake | September 17, 2016 — 6:00 AM EDT
EpiPen, the life-saving device that’s used to treat severe allergic reactions, is at the center of a firestorm of controversy surrounding its pricing as well as some questionable strategizing on the part of its maker, Mylan (MYL). So what are Mylan’s alleged sneaky EpiPen maneuvers?
Sneaky EpiPen Maneuvers: Who Benefits?
The wholesale price of EpiPens has increased by nearly 500% since 2009, according to Rx Savings Solutions Chief Executive Officer (CEO) Michael Rea. That escalation in pricing has been passed on to customers, who have seen their out-of-pocket costs for the device skyrocket. The average retail cost of a standard two-pack of EpiPens has now crossed the $600 mark. (For more, see Mylan Increases Access to EpiPen After 545% Price Hike (MYL). [That percent increase is based on the pen's 2007 price.])
As a result, Mylan has become the target of protests, and at least 500,000 petitions objecting to the increase have been delivered to the company’s offices in Canonsburg, Pa. Mylan CEO Heather Bresch is scheduled to appear before the U.S. House Committee on Oversight and Government Reform on Sept. 21 to discuss the reasoning behind the price hike.
A New York Times report suggests that Mylan is doing some behind-the-scenes work to soothe angry consumers while still protecting its bottom line. According to the report, a proposal has been put forth to add the EpiPen to a federal list of medical preventive services. This would pass on the higher cost to the federal government, insurers and employers, while removing the burden from the everyday consumers who need affordable access to the device – and perhaps silencing the chorus of complaints about high costs.
Although the move to grant EpiPen federal status is a positive for consumers, the motivation behind it has been called into question. While the Times report acknowledges that the campaign has drawn support from medical professionals as well as the chief executive of the Allergy and Asthma Network Mothers of Asthmatics (AANMA), Tonya Winders, it also points out that one of the proposal’s biggest beneficiaries and advocates just happens to be Mylan itself.
Dr. Leonard Fromer, who published an article in the American Journal of Medicine backing the idea, is reportedly a paid consultant for Mylan. Mylan has engaged in outreach efforts with various advocacy groups, including the one headed by Winders, to generate further support for the measure. It’s evident that the push toward EpiPen’s inclusion on the federal list isn’t solely based on the company’s desire to promote good will among its customers.
Potential Remedies for Mounting Drug Costs
In response to the ongoing outcry, lawmakers have introduced a new bill that would require drug companies to disclose their costs before raising prices by more than 10%. The initiative, led by Republican Sen. John McCain of Arizona and Democrats Sen. Tammy Baldwin of Wisconsin and Rep. Jan Schakowsky of Illinois, is aimed at increasing transparency on the part of drug manufacturers, making sure that consumers aren’t blindsided by major price jumps. (For more, see Two Senators Investigate Pricing of Mylan’s EpiPen (MYL).)
In the medical community there’s a growing amount of buzz surrounding alternatives to the EpiPen that could prove to be more financially friendly to consumers. A recent Fortune report profiled Douglas McMahon of the Allergy and Asthma Center of Minnesota, who says he’s developed a more convenient method of administering epinephrine that would cost roughly a tenth of what the EpiPen does.
Other drug companies are getting in on the action as well. Imprimis Pharmaceuticals (IMMY) is reportedly working on an EpiPen product that would cost approximately $100. Mylan has even gone so far as to announce its own generic version, with a price tag of $300. (For more, see Mylan to Launch a Cheaper Generic EpiPen (MYL).)
Read more: Mylan’s Sneaky EpiPen Maneuvers (MYL, IMMY) | Investopedia www.investopedia.com/articles/insights/091716/mylans-sneaky-epipen-maneuvers-myl-immy.asp#ixzz4KYNNrhbD
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