My­lan plays de­fense

Daily Freeman (Kingston, NY) - - BUSINESS -

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.

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