Mylan CEO grilled by lawmakers

WASHINGTON — Outraged Republican and Democratic lawmakers on Wednesday grilled the head of pharmaceutical company Mylan about the significant cost increase of its life-saving EpiPen and the profit for a company with sales in excess of $11 billion.

Mylan CEO Heather Bresch held up an EpiPen as she told the House Oversight and Government Reform Committee that she wishes the company had “better anticipated the magnitude and acceleration” of the rising prices for some families.

“We never intended this,” she said, but maintained that her company doesn’t make much profit from each emergency allergy shot.

The list price of EpiPens has grown to $608 for a two-pack, an increase of more than 500 percent since 2007. Republicans and Democrats have said families struggling to pay for the shots have every right to be angry at Mylan.

Opening the hearing, committee Chairman Jason Chaffetz, R-Utah, said high executive pay at Mylan “doesn’t add up for a lot of people” as the EpiPen price has increased. Chaffetz said executives for the company made $300 million over five years while the list price for a pair of the emergency allergy shots rose.

“Parents don’t have a choice,” Chaffetz said. “If your loved one needs this, it better darn well be in your backpack.”

Bresch said the company makes only $50 in profit on each EpiPen. But Chaffetz said he finds that “a little hard to believe.”

EpiPens are used in emergencies to stop anaphylaxis, the potentially fatal allergic reactions to insect bites and stings, and foods like nuts and eggs. People usually keep EpiPens handy at home, school or work, but the syringes, filled with the hormone epinephrine, expire after a year.

The company says it has made strides to more widely distribute the drug to schools and others and raised awareness of deadly allergies. That requires investment, Bresch said.

Bresch has some familiarity with Capitol Hill — she is the daughter of Sen. Joe Manchin, D-W.Va. But lawmakers so far haven’t given any deference to her because she is related to a colleague. Several other committees have called for investigations into the matter.

Bresch noted that Mylan has said it will begin selling a two-pack of its generic version for $300. That will still bring Mylan tens of millions of dollars while helping retain market share against current and future brand-name and generic competition.

Chaffetz said he is skeptical that the company will lose any money on the generic versions.

“This is why we don’t believe you,” he said.