After facing intense criticism last summer, pharmaceutical company Mylan has reduced the price of its essential EpiPens from $600 for a pair to $300 for a pair of generic pens. While this 50% reduction might seem beneficial, the reality is that Mylan only spends about $30 to produce each pen.
The Importance of EpiPens
EpiPens are crucial for providing immediate treatment to children with severe allergies. Parents often require approximately four pens to ensure their child has access to this life-saving medication at home and school, and these pens must be replaced annually. With the former price of $600, families found themselves spending up to $1,200 each year to safeguard their children against anaphylactic reactions. Even those with decent insurance plans still faced significant out-of-pocket expenses.
Introduction of a Generic Version
In response to the backlash, Mylan has introduced a generic version of the EpiPen at half the cost of the branded version. This new option is set to launch shortly after the return of the Auvi-Q epinephrine auto-injector, a competitive product from Kaleo Pharmaceuticals. Although the Auvi-Q was previously recalled due to dosing concerns, it is now being produced by a different company that claims to have resolved those issues.
Mylan’s Reputation and Profit Concerns
Mylan appears to be attempting to bolster its reputation as the go-to choice for parents while addressing criticism. However, experts suggest that this move could lead to increased profits for Mylan, as the production and distribution of generics can eliminate some of the intermediaries that contribute to higher prices for branded medications.
Mylan CEO Lisa Harper claims that the high price of EpiPens is due to the “four or five hands” that touch the product before it reaches consumers. Nevertheless, many are skeptical of this explanation, especially considering Mylan’s previous legal issues, including a settlement over misleading Medicaid claims and tax avoidance through a controversial strategy known as inversion.
Criticism of the Price Reduction
When it comes to the new generic option, some critics argue that the advertised 50% savings may not reflect the true cost, essentially serving as a public relations maneuver rather than a genuine discount. Senator John Lawson has stated, “This isn’t a discount. It’s a PR move.”
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Conclusion
In summary, while Mylan’s reduction in EpiPen prices may seem like a step in the right direction, the company’s production costs raise questions about the fairness of drug pricing, particularly for life-saving medications.