CEO defends EpiPen cost to House panel
WASHINGTON — Outraged Republican and Democratic lawmakers on Wednesday grilled the head of pharmaceutical company Mylan about the significant cost increase of its lifesaving EpiPens and the profits for a company with sales in excess of $11 billion.
Mylan CEO Heather Bresch, the daughter of Sen. Joe Manchin, D-W.Va., held up an EpiPen pack 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.
The list price of EpiPens has grown to $608 for a two-pack, a hike of over 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, House Oversight Chairman Rep. Jason Chaffetz, RUtah, said high executive pay at Mylan “doesn’t add up for a lot of people.” Chaffetz said executives at the company made $300 million over five years.
“Parents don’t have a choice,” Chaffetz said.
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 multiple EpiPens handy at home, school or work, but the syringes, prefilled with the hormone epinephrine, expire after a year.
Bresch noted that Mylan has said it will begin selling its generic version for $300 for a pair. Chaffetz said he was skeptical that the company will lose any money on the generic versions.
“This is why we don’t believe you,” he said.