Mylan launching cheaper, generic version of EpiPen

Consumers and politicians have accused the company of price-gouging, since the list price for a pair of EpiPens has climbed repeatedly from around $94 in 2007, when Mylan acquired the product.

Mylan CEO Heather Bresch defended the price hikes last week, saying the company only received $274 of the total price for a twin-package while insurers, pharmacies and other parties divvy up the rest.

Last week, Mylan said it was expanding programs that help people pay for EpiPens. 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.

A company representative said Monday that the $300 cards would be available only for the branded version, but patients could use its assistance program for both the branded and generic versions of the medicine.

How much an individual pays for an EpiPen prescription can depend on insurance coverage.

Pharmacy benefits managers, which negotiate drug prices for insurers and employers, often get discounts off a drug’s list price, and patient out-of-pocket costs can vary by plan. For instance, customers of Express Scripts Holding Co., the nation’s largest prescription benefits manager, pay $73.50 on average, a price the company has kept fairly stable for a couple years.

Mylan said that last year, nearly 80 per cent of its patients with commercial insurance paid nothing out of pocket for an EpiPen prescription due to its savings card

Uninsured patients or those with high-deductible coverage might be stuck paying the full price for the prescription, if they are unaware of Mylan’s savings options. High deductible coverage can require patients to pay thousands of dollars toward medical care or prescriptions before most coverage kicks in.

Mylan specializes in selling generic drugs, which are lower-priced equivalents to branded medications. Launching a generic version of the EpiPen can help the drugmaker protect its market share from competition.

Mylan’s announcement Monday comes a few days after the compounding pharmacy Imprimis Pharmaceuticals said it might be able to sell a version of the allergy treatment in a few months and would likely charge around $100 for two injectors.

There is currently little competition for EpiPen, with the only rival product being Adrenaclick, which carries a list price of $461. But that could change.

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

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.

Shares of Mylan NV slipped 34 cents to $42.69 in morning trading Monday, while broader indexes rose slightly.

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AP Business Writers Damian Troise and Michelle Chapman contributed to this report from New York. AP Medical Writer Linda A. Johnson contributed from Trenton, New Jersey. Murphy contributed from Indianapolis.

Tom Murphy, The Associated Press

by Canadian Press

Mylan launching cheaper, generic version of EpiPen

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