September 6, 2016
By Alex Keown, BioSpace.com Breaking News Staff
PITTSBURGH – Shares of Mylan NV continue to see a steady decline as the company battles public relations issues related to the high price of its life-saving EpiPen Auto-Injector. Not only is the company facing scrutiny over its nearly $500 price tag, but now the company is denying rumors that its chief executive is stepping down.
Street Insider posted a note from Mylan denying rumors that its CEO Heather Bresch will resign her position from the company—despite consumer protests calling for her to step down. Last week a protest was held outside Mylan’s West Virginia offices, with many of the protesters telling local news outlets that the high price of the EpiPen was unwarranted and a threat to the public health since so many people with allergies rely on its accurate delivery of epinephrine to stave off a severe allergic reaction that could lead to death. Rumors of Bresch’s resignation were first reported by DealReporter, Street Insider said.
The American Medical Association also called for Mylan to check the costs of the EpiPen, saying in a statement that it “has long urged the pharmaceutical industry to exercise reasonable restraint in drug pricing.”
Not only has the public outcry been loud, but Democratic presidential candidate Hillary Clinton has also weighed in on the conversation, reiterating a pledge to control prescription drug prices if elected, Reuters reported. Clinton’s plan to create an oversight panel to protect patients from the high price of drugs is something she first floated last year after Turing Pharmaceuticals increased the price of its newly-acquired toxoplasmosis treatment Daraprim by 5,000 percent.
Since company acquisition of the EpiPen in 2007, the price has dramatically increased from $57 to nearly $500, a 400 percent increase. The EpiPen generated more than $1.2 billion in revenue for 2015, accounting for about 40 percent of Mylan’s overall earnings. The revenue stream has not only been good for the company’s bottom line, but also served as a catalyst for big payday raises for its top executives, including Bresch.
For its part, Mylan has attempted to control the narrative surrounding the EpiPen pricing, including new pricing options. Mylan announced plans to increase customer access to the EpiPen by expanding company programs to offset the high cost of the precise-dose auto-injectors, as well as its free EpiPen program for schools across the United States. Mylan also said it is doubling eligibility for its patient assistance program to 400 percent of the federal poverty level. This means a family of four making up to $97,200 would pay nothing out of pocket for their EpiPen. Lastly, the company said it is opening a pathway for people to order the pen directly from the company as part of an effort that will reduce costs. Mylan also announced the introduction of a generic version of the EpiPen, which would lower the cost of the injectable.
While the company has made changes to its pricing structure, Bresch said part of the blame for the cost is the healthcare system itself. In an interview with CNBC, Bresch laid blame on the healthcare system for the high cost of the EpiPen. She said the product must pass through “four or five hands” and companies before it reaches patients—with each company taking a bit of the money, causing the product to increase in price. One company that is part of the process is Pfizer , which manufactures the actual drug the EpiPen Auto-Injector uses. Over the past few years, Pfizer has seen an increase in profits from its association with the EpiPen.
