cheaper generic
version of the emergency allergy treatment EpiPen will be made
available within the next few weeks, manufacturer Mylan said. In
the wake of mounting criticism over recent price hikes, the company said the
generic version will be distributed by its U.S. subsidiary. It will have a list
price of $300 for a two-pack, compared with $608 for the brand-name version.
The generic version will be available in both 0.15 milligram (mg) and 0.30 mg
strengths, the Associated
Pressreported. EpiPens
are used to treat anaphylaxis -- a severe, potentially fatal
allergic reaction to insect bites and foods like nuts and eggs.
The
auto-injection device, which contains the hormone epinephrine, expires after a
year. Since most users need several -- one for home, and one for school or
work, for example -- the costs can mount up. With just one
competitor, Mylan has a near monopoly on the device. Now, the company is being
accused of price gouging after significantly increasing the EpiPen price in
recent years. The
list price for the pack of two was a little more than $100 when Mylan first
bought the device in 2007. Most of the increase -- from $265 to more than $600
-- has come in the last three years, The
New York Times reported.
Health
insurance doesn't necessarily help all people who need EpiPens, because those
with high deductibles must pay almost the total price. Some
politicians have called for: Congressional hearings on the escalating pricing,
an investigation by the Federal Trade Commission, and action by the U.S. Food
and Drug Administration to increase competition by hastening approvals of
competitors' products, the AP reported. EpiPens
have been marketed since the 1980s, and some observers have also questioned why
Mylan still holds a patent. The patent applies to the device itself, not the
active ingredient. At
least two companies are seeking approval to sell a rival brand or generic
version of EpiPen in the United States, but none are likely to be available
until later next year.
However,
the compounding pharmacy Imprimis Pharmaceuticals said it may have a version
available for individual patients in a few months. It said it would likely
charge about $100 for two injectors, the AP reported. The raging debate over
EpiPen pricing has offered a surprisingly wide window into the complicated
world of prescription drug pricing, in which powerful drug companies, pharmacy
benefit managers, insurers and federal health programs all play major roles.
However, the system remains opaque.Last
week, the company announced steps to increase the financial assistance for the
branded EpiPen, for both commercially insured and uninsured patients. Those
measures, however, did not stem the public furor, in part because the company
kept the list price the same. So now, the company will essentially sell the
same product under two names at two price points, in competition with each
other.The
new move did not mollify critics, either. Some noted that even at $300, the
generic would still be triple the price of the EpiPen in 2007, when Mylan
acquired the product and began steadily raising its price. The increases have
accelerated in recent years. Even the generic, expected to be available in
several weeks, should provide a nice profit to Mylan because its manufacturing
costs are believed to be far less than $300.Several consumer advocacy groups, unhappy with Mylan’s handling
of the drug’s pricing, said that on Tuesday they would deliver petitions signed
by over 600,000 people to the company’s American corporate headquarters in
Canonsburg, Pa. In addition, the House Committee on Oversight and Government
Reform said that it had started an investigation and had asked the company for
information about the product.Robert
Weissman, president of the consumer group Public Citizen, said Mylan should
just cut the price across the board. “The weirdness of a generic drug company
offering a generic version of its own branded but off-patent product is a signal
that something is wrong,” he said in a statement. “In short, today’s
announcement is just one more convoluted mechanism to avoid plain talk, admit
to price gouging and just cut the price of EpiPen.”While
brand-name drug companies sometimes start selling so-called authorized generic
versions of their own products, it is usually to undercut an outside generic
competitor. In this case, Mylan faces no immediate generic threat.
