Mylan deepens discount on some EpiPen sales in U.S. after criticism - Action News
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Mylan deepens discount on some EpiPen sales in U.S. after criticism

Mylan, in the face of heated criticism over price hikes for its EpiPen emergency allergy treatment, is bulking up programs that help patients pay for the drug.

Generic drugmaker lays out plan to expand its patient assistance program and offer savings cards

EpiPen dispenses epinephrine through an auto-injection mechanism for people with severe allergies. The drugmaker has come under fire from consumers and lawmakers in the U.S. for price hikes. ( Joe Raedle/Getty)
Mylan is bulking up programs that help patients pay for its EpiPen emergency allergy treatment after weathering heated criticism about an average cost that has soared over the past decade.

But the drugmaker didn't budge on its price, which has drawn ireboth in Congress and from families that have had to shell outincreasingly large sums for the potentially life-saving treatment.

That means the insurers and employers that pay the bulk of theEpiPen cost for many patients will continue to do so, contributingto higher health insurance costs.

"That's just going to come out in the premiums," said SabrinaCorlette, a research professor at the Georgetown University's HealthPolicy Institute. "Everybody suffers, except the Mylan investors."

The average price of a two-dose EpiPen package climbed to about$608 US earlier this year, up from around $94 US nine years ago, accordingto the Elsevier Clinical Solutions' Gold Standard Drug Database.

Mylan CEO Heather Bresch told CNBC Thursday that lowering theprice was not an option.

"Had we reduced the list price, I couldn't ensure that everyonewho needs an EpiPen gets one," she said.

Discounts 'insufficient'

EpiPens are used in emergencies to treat severe allergies thatcan lead to anaphylactic shock. Roughly 40 million Americans havesevere allergies to spider bites, bee stings and foods like nuts,eggs and shellfish.

Democratic presidential candidate Hillary Clinton and members ofCongress from both parties have quickly ramped up criticism of thecompany and its pricing.

Mylanmove to expand discount programs for EpiPenwas welcome but not sufficient, a spokesman for U.S. Democratic presidential candidate Hillary Clinton said in astatement.

"Discounts for selected customers without lowering theoverall price of EpiPens are insufficient, because the excessiveprice will likely be passed on through higher insurancepremiums," Clinton campaign spokesman Tyrone Gayle said Thursday. "Sincethere is no apparent justification for the price increase, Mylanshould immediately lower the overall price of EpiPens."

"Had we reduced the list price, I couldn't ensure that everyone who needs an EpiPen gets one," Mylan Pharmaceuticals CEO Heather Bresch told CNBC. (Dale Sparks/Associated Press)

Bresch said Thursday that Mylan gets $274 US for a two-dose EpiPenpackage. The rest of the $608 US price goes to entities that standbetween the drugmaker and the patient, like insurers, pharmacybenefits managers, wholesalers and drugstores.

'This is a health care issue'

"This isn't an EpiPen issue," she said. "This isn't a Mylanissue. This is a health care issue."

Mylan did say, however, that it was doubling the eligibility forits patient assistance program to people with incomes four timeshigher than the federal poverty level. It said that means a familyof four making up to $97,200 US would pay nothing out of pocket for thetreatment. It also noted that its $300 US savings card would cut thebill in half for patients who would otherwise have to pay full pricefor the EpiPen.

Patients also will be able to order the injected medicinedirectly from the company, to help lower costs.

These measures could provide significant help for people with nocoverage facing the full bill. But they might have more limitedvalue to a patient whose insurer will cover most of the bill anywayand whose future premium could be affected each year.

Customers of Express Scripts Holding Co., the largestpharmacy benefits manager in the U.S., pay about $73.50 US out of pocket for anEpiPen prescription, spokesman Brian Henry said. He noted that pricehas stayed relatively stable the past couple years.

Last year, more than 3.6 million U.S. prescriptions for two-packsof EpiPens were filled, according to data firm IMS Health. Thatbrought in sales of nearly $1.7 billion US for Mylan.

Canada's patenteddrug prices are regulated by the federal Patent MedicinePrices Review Board.EpiPens in Canada are manufactured by Mylan butdistributed by Pfizer Canada. The price has hovered around $100 for thelast four years and Pfizer Canadasays there are no plans to increase the Canadianprice.

With files from CBC News and Reuters