Mylan CEO to Shift Blame on EpiPen Pricing at Hearing
September 21 2016 - 10:50AM
Dow Jones News
Mylan NV CEO Heather Bresch plans to defend the rising price of
EpiPens when testifying before Congress Wednesday, sticking to the
company's effort to shift blame to health insurers and drug-benefit
managers.
Since scrutiny of EpiPen's price intensified, the company has
sought to point fingers at the other health-system actors that
profit from rebates Mylan gives off the list price and that require
some patients to pay high deductibles before reimbursing drug
costs.
"With the current focus on pricing, I'm very concerned that the
access part of the equation is being minimized," Ms. Bresch says in
prepared remarks reviewed by The Wall Street Journal.
EpiPens are devices for injecting epinephrine during emergencies
when a patient is experiencing a serious allergic reaction. Since
acquiring the product in late 2007, Mylan has raised the list price
548% to nearly $609.
Ms. Bresch is scheduled to testify Wednesday afternoon before
the House Oversight and Government Reform Committee about the price
increases.
In the prepared remarks, Ms. Bresch says Mylan has made more
than $1 billion investments over the years to raise awareness of
anaphylaxis, improve EpiPens and extend their shelf life.
She notes Mylan plans to sell a generic version for half the
cost of the brand-name product.
She also argues that Mylan doesn't profit as much as might be
expected given the list price. "I think many people incorrectly
assume we make $600 off each EpiPen. This is simply not true," Ms.
Bresch says.
Mylan pays back much of the list price, $274, in the form of
rebates and fees, the CEO says. Drug companies give these discounts
to secure reimbursement by health plans and drug-benefit
managers.
About $105 pays for sales, manufacturing, marketing and related
costs, while another $69 covers the cost of making the two-packs,
Ms. Bresch says.
Write to Jonathan D. Rockoff at Jonathan.Rockoff@wsj.com
(END) Dow Jones Newswires
September 21, 2016 10:35 ET (14:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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