The Mercury News Weekend

EpiPen

- By Linda A. Johnson and Tom Murphy

“This step seems like a PR fix more than a real remedy, masking an exorbitant and callous price hike.” — Sen. Richard Blumenthal, D- Conn.

University’s Health Policy Institute.

This week, Mylan joined other drugmakers such as Valeant Pharmaceut­icals Internatio­nal Inc. and Turing Pharmaceut­icals, which have been blasted for mammoth price increases.

Mylan CEO Heather Bresch defended her company’s price hikes Thursday, telling CNBC that lowering the price was not an option. Bresch said the company receives only $274 of the $608 for a twin package of Epi Pens. She said insurers, pharmacies, prescripti­on benefit managers and distributo­rs divvy up the rest.

Instead of a price cut, Mylan said it was expanding programs that help people pay for Epi Pens or give them out free. It doubled the limit for eligibilit­y for its patient assistance program, so a family of four making up to $97,200 would pay nothing out of pocket. It also said it will offer $300 copay cards, up from the current $100 per-prescripti­on savings. That would cut the bill in half for patients who have to pay full price.

People will eventually be able to order the injected medicine directly from the company, to lower their cost.

“This step seems like a PR fix more than a real remedy, masking an exorbitant and callous price hike,” Sen. Richard Blumenthal, DConn., said in a statement.

Epi Pens, which have little competitio­n, are used in emergencie­s to treat severe allergies to insect bites and foods like nuts and eggs that can lead to anaphylact­ic shock. People usually keep a number of Epi Pens handy at home, school or work. The syringes, prefilled with the hormone epinephrin­e, expire after a year.

How much an individual pays depends on insurance coverage. Private insurers often negotiate discounts off the list price, and patient out-of-pocket costs vary by plan. Customers of Express Scripts Holding Co., the nation’s largest prescripti­on benefits manager, pay $73.50. Mylan has said that many people get Epi Pens with no out-of-pocket cost.

The list price for a pair of Epi Pens has been raised repeatedly from $93.88 in 2007, when Mylan acquired the product, according to Elsevier Clinical Solutions’ database of prices set by manufactur­ers.

Numerous members of Congress and other politician­s this week have called for congressio­nal hearings on Mylan’s pricing, an investigat­ion by the Federal Trade Commission, and action by the Food and Drug Administra­tion to increase competitio­n by speeding up approvals of any rival products.

After one Epi Pen com- petitor was pulled from the market last year, only one rival product is available, Adrena click, which carries a list price of $461. But Epi Pen, introduced in 1987, is so well known that most doctors prescribe it without considerin­g an alternativ­e.

At least two companies are trying to get U.S. approval to sell a rival brand or generic version of Epi Pen. None is likely to hit the U.S. market until well into next year.

Relief could come sooner from Imprimis Pharmaceut­icals, a compoundin­g pharmacy that prepares medicines to fill individual prescripti­ons. It said it might be able to sell a version in a few months and would likely charge around $100 for two injectors.

Meanwhile, actress Sarah Jessica Parker, whose son has severe nut allergies, wrote on Instagram that she’s cut ties with Mylan and is “disappoint­ed, saddened and deeply concerned” over Epi Pen’s price. Parker was paid to participat­e in a Mylan campaign.

The maker of EpiPens offered patients more help to pay for its costly emergency allergy shots but didn’t budge Thursday on the $608 price.

The announceme­nt from Mylan N.V. triggered a new round of condemnati­on from politician­s and consumer groups, who accuse the com- pany of price gouging on a potentiall­y lifesaving treatment.

Critics stressed that insurers, employers and taxpayers will still foot most of the cost for EpiPens. Over time, that drives up insurance premiums and the country’s burgeoning health care tab.

“Everybody suffers, except the Mylan investors,” said Sabrina Corlette, of Georgetown

 ?? JOE RAEDLE/GETTY IMAGES ?? Mylan’s EpiPens dispense epinephrin­e through an injection mechanism for people with severe allergies. A twin package of EpiPens costs $608.
JOE RAEDLE/GETTY IMAGES Mylan’s EpiPens dispense epinephrin­e through an injection mechanism for people with severe allergies. A twin package of EpiPens costs $608.

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