Mylan plays defense
Mylan may continue to suffer bruising to its reputation over runaway pricing for its life-saving EpiPen injection device, but that pain won’t likely run deep enough to cut into its bottom line.
That’s the general assessment from Wall Street following a Congressional hearing over the price tag for the device and plans to offer a generic version at a lower cost in a move to placate critics.
The pharmaceutical company has seen its revenue grow steadily over the years, partly because of higher pricing and sales of EpiPen, which are used in emergencies to stop anaphylaxis. The cost of the device to consumers has skyrocketed over the last decade for no discernable reason.
“Mylan obviously took punches for the drug industry as a whole,” said Raymond James analyst Elliot Wilbur, in a note. But, he said, the immediate impact of an in-house generic version will be minuscule. The greater potential threat is outside generic competition, but there doesn’t seem to be any immediate competitor.