Mylan increased EpiPen copay assistance after price hikes sparked outrage
Mylan NV, an American global generic and specialty pharmaceuticals company, said it would reduce the out-of-pocket costs of its emergency EpiPen allergy injection for some patients after criticism from lawmakers and the public rose over the product’s rapidly escalating price.
Since it was acquired by Mylan in 2007, the price of EpiPen has skyrocketed from US$100 to US$600.
The drug’s list price will remain the same, but the company said it would increase the maximum copay assistance program from US$100 to US$300 for patients who pay for the 2-pak in cash or who are covered by a commercial health insurer.
Mylan also said it is doubling the eligibility for its patient assistance program, which will eliminate out-of-pocket costs for uninsured and under-insured patients and families.
But government paid programs are not eligible for the copay assistance program.
According to a Bernstein analyst, Ronny Gal, when all is said and done he estimates a total price reduction for EpiPen of 32%. The price rose 27% in the second quarter of 2016 versus the same quarter a year ago.
Mylan is the latest company to be caught up in the growing outrage at apparently shocking drug price increases. Valeant Pharmaceuticals International Inc. and Turing Pharmaceuticals have both been publicly criticized for similar price increases.
Presidential candidate Hillary Clinton, who has spoken out against escalating drug prices, “welcomes the fact that Mylan is now apparently open to taking steps to lower some of the cost sharing burdens imposed on families,” Tyrone Gayle, a campaign spokesman, said in a statement.
However, he added, “discounts for selected customers without lowering the overall price of EpiPens are insufficient, because the excessive price will likely be passed on through higher insurance premiums.”
In an interview, Mylan Chief Executive Heather Bresch defended the drug price saying her company had spent hundreds of millions of dollars improving EpiPen, including making its needle invisible, since acquiring the device from German generic drugmaker Merck KGaA. She also added than when they acquired the product, Merck wasn’t “spending a dollar on it”.
Bresch said Mylan recoups less than half of EpiPen’s list price because pharmacy benefit managers, which often require discounted prices or rebates from drugmakers, are involved, along with insurers and others.
EpiPens are preloaded injections of epinephrine (adrenaline) used in case of a dangerous allergic reaction known as anaphylaxis that could cause death if untreated.
Anaphylaxis can occur in as little as a couple of minutes of exposure to the allergen, which can come in the form of food such as peanuts or insects such as bees. Certain medications or latex can also cause a severe reaction.
Symptoms include itching, swelling of the lips, tongue and roof of the mouth, tight chestedness and difficulty breathing. People who are susceptible to such reactions are frequently advised to carry an EpiPen, which can deliver an immediate emergency jolt of adrenaline to reverse the symptoms.
A group of lawmakers recently said they had written the US Food and Drug Administration (FDA) asking about its approval process for alternatives to the EpiPen.
Category: Features, Pharmaceuticals
