One wonders how one company has a price gouging monopoly, on a medication that was invented over 30 years ago. Could the FDA be part of this extortion? Attempts by other Pharmaceutical companies to produce generics have been blocked or delayed for one reason or the other, while Mylan does what it wants – legal but deplorable. Lobbyist, Lawyers and corrupt politicians continue to game the system and legally get away with murder.
Heather Bresch is the CEO of Mylan Inc, the pharmaceutical company which manufactures Epipen and has increased the price from $100 to over $600. EpiPen is a rapid shot of Epinephrine, a medication that combats severe, life threatening allergic reaction. This situation is reminiscent of Martin Shkreli, who increased the price of Daraprim from $10 to $750. Mylan was smarter than Shkreli, in that, it gradually hiked the price over the years.
Ms. Bresch has led Mylan to major revenue increases with projected earnings of $10.1 billion this year, from $6.1 billion in 2011. She also helped the company get the FDA approval for EpiPen to be sold as a pair. Her total income increased from $2,453,456 to $18,931,068 – CNBC.com
The cost of manufacturing a single dose of EpiPen is $1.00, so why the price gauging? The problem only came to light because of the structure of health plans, which has increasingly passed on the cost of medications to the patients. Some patients pay up to $1,500 for the three packs of EpiPen.
Dough Hirch of GoodRx has said that even if a patient’s copay is zero for EpiPen, their Insurance Company will pay about $500 for the drug. He continued, that increase in cost of the medication is most likely due to the recall of Sanofi’s Auvi –Q, a competitor of EpiPen and the FDA’s rejection of a generic EpiPen by Teva. This is a classic case of less competition leading to greed and price hiking.