Enough is enough, say several senior members of Congress, the Federal Trade Commission, members of the health care community and parents.
Even disgraced former Turing Pharmaceuticals CEO Martin Shkreli, himself accused of price gouging on medication to treat HIV, is calling Mylan “vultures.” Shkreli posed a rhetorical question on NBCNews.com: "What drives this company's moral compass?"
Bloomberg reported Tuesday that members of Congress are demanding answers:
Two senior U.S. senators are examining Mylan NV’s price increases for the popular EpiPen allergy shot, with lawmakers saying the drugmaker’s practices may have limited competition and access to the treatment. Senator Charles Grassley, an Iowa Republican, asked the company to explain “a steep price increase in the product in recent years,” citing complaints from constituents who say they have to pay as much as $500 for one prescription. Grassley heads the Senate Committee on the Judiciary.
“The substantial price increase could limit access to a much-needed medication,” Grassley wrote to Mylan Chief Executive Officer Heather Bresch in an Aug. 22 letter.
PR pros step in
According to People, Lauren Kashtan, Mylan's head of North America communications, says the price shift is due to a rise in health care costs. Kashtan has been quick to point out that in the past four years, schools have received some 650,000 auto-injectors donated by Mylan. Many schools are required to keep the medication on their premises in case of a potentially fatal allergic reaction.
"With changes in the health insurance landscape, an increasing number of people and families are enrolled in high-deductible health plans, and deductible amounts continue to rise," Kashtan says. "This shift has presented new challenges for consumers, and they are bearing more of the cost. This change to the industry is not an easy challenge to address, but we recognize the need and are committed to working with customers and payors to find solutions to meet the needs of the patients and families we serve." The statement also includes information about how to use coupons to receive the device for free, however they require patients to be commercially insured.
The Federal Trade Commission weighed in on the issue, too. On Monday, Bloomberg reported:
“The commission takes seriously its obligation to take action where pharmaceutical companies have violated the antitrust laws and will continue to closely scrutinize drug market competition on consumers’ behalf,” Justin Cole, an FTC spokesman, said in an e-mailed statement.
Mylan spokeswoman Nina Devlin declined to comment specifically on the letters. [Again], the company says that it offers several programs to help people afford the drug.
On the Mylan website, communicators stayed on message, sharing a laundry list of in-kind donations, discounts and community programs around the EpiPens.
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The wheels on the bus go ’round and ’round
Criticism of the price hike was splashed on social media and news websites. Few sympathized with Mylan’s positions, especially parents who have been buying back-to-school supplies for kids.
Bloomberg reported Mylan’s (branding) success has come on the backs of emotional parents concerned about possible allergic reactions.
How Mylan pulled that off is a textbook case in savvy branding combined with a massive public awareness campaign on the dangers of child allergies. Along the way, EpiPen’s wholesale price rose roughly 400 percent from about $57 each when Mylan acquired the product. “They have done a tremendous job of taking an asset that nobody thought you could do much with and making it a blockbuster product,” says Jason Gerberry, a Leerink Partners analyst.
“[EpiPens] have been proven to be a much more dependable source of treatment, especially for children,” says Bob Lanier, MD, executive medical director of the American College of Asthma, Allergy and Immunology. But many people find themselves having to buy several sets of auto-injectors a year to keep at schools or at relatives’ or caregivers’ homes. And the EpiPen has a 1-year expiration date, which means that becomes an annual cost.
Wall Street is watching
As Mylan’s stocks continue to slide these past few days, the company is also being hammered for its executive pay raises. According to NBCNews:
EpiPen prices aren't the only thing to jump at Mylan. Executive salaries have also seen a stratospheric uptick. Proxy filings show that from 2007 to 2015, Mylan CEO Heather Bresch's total compensation went from $2,453,456 to $18,931,068, a 671 percent increase. During the same period, the company raised EpiPen prices, with the average wholesale price going from $56.64 to $317.82, a 461 percent increase, according to data provided by Connecture.
A spokeswoman for Mylan didn't immediately respond to an NBC News request for comment about executive compensation.
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