Mylan Didn’t Lower EpiPen Prices After All; They Just Appeared To

‘These days have seen a number of stories about the Mylan EpiPen scandal, the essence of which is captured in the graphic at the top (note, though, that the graphic understates the EpiPen price; it’s now around $640). Heather Bresch, Mylan’s CEO, decided to increase corporate profit by increasing the price of a mature product, EpiPen, a device that delivers life-saving epinephrine to people who suffer life-threatening anaphylactic shock from allergic exposure to, for example, bee stings and peanuts. In the view of most observers, she did it simply because she could.
There’s no economic reason for the price increases, any of them. Epinephrine (basically adrenalin) is not proprietary. As Dr. Lee Rogers notes in the first link below, “As a hormone, it’s a product of nature and cannot be patented.” And the delivery mechanism (the “pen”) has been around since 1977. All of the R&D is done, and the medicine is cheap. All told, each EpiPen contains just one dollar worth of medicine. (And it seems the original EpiPen was at least partly developed with taxpayer money.)’
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