Mylan Pharmaceuticals, the maker of EpiPens, and its CEO Heather Bresch are running for cover. An uproar by concerned citizens and Congressional hearings are stirring up a media frenzy!
EpiPens are lifesaving devices to be used on people who are having a severe allergic reaction to food or sometimes insect bites. Some people experience a life threatening reaction, called anaphylactic shock, due to certain allergies like peanuts, shellfish, or bee stings. EpiPens are a portable and easy to use handheld device to dispense an emergency dose of epinephrine medication to a patient’s bloodstream. The relief is almost immediate and gives enough time to get the person professional medical help. People with severe allergies normally carry an EpiPen. Parents carry them for their children and schools normally stock several as well. They are a lifesaving necessity for some.
The devices typically only have a shelf life of a year, so they must be replaced regularly, which is expensive. The price has been skyrocketing for several years. Now, two EpiPens can cost upwards of $600, an increase of over 500% over the past 8 years.
The price increases began in 2007, when Mylan Pharmaceuticals acquired the rights for the EpiPen auto-injector. Heather Bresch, the CEO, has been raising prices ever since. At the same time, she has been getting significant pay raises and earned almost $19 million in total compensation last year. She also lobbied to have EpiPens deployed in U.S. schools before then moving the company to a tax haven overseas. It all looks pretty bad.
The public and stockholders are not happy. Congress is now looking into the matter as a potential healthcare price gouging affair. Celebrities have come out against Mylan and the news outlets went nusts with the story. All this negative publicity turned investors sour. The stock market punished Mylan’s stock by over 12% in a few days, prompting the Bresch to defend her actions and the company to take extreme measures.
Mylan has now stated they would offer coupons covering up to $300 for some patients and provide assistance to families which meet certain income requirements. Although the base price remains unchanged, for many users this would effectively cut the price in half. The company said a family of four with income up to $97,200 won't pay out of pocket.
Many watchers are still not happy. I doubt this will be the end of this story. These devices are crucial in the event of an allergic reaction emergency. I am part of a medical team and we have them just in case of emergency. Anaphylactic shock can result in the airways of a person to close, leaving them convulsing and gasping for air. A rapid dose of epinephrine into the bloodstream is the way to save a patient’s life before emergency medical services arrives.
