Why Did EpiPen Prices Soar? – IOTW Report

Why Did EpiPen Prices Soar?

Epinephrine doesn’t cost that much to make.

NBC-

EpiPen prices aren’t the only thing to jump at Mylan. Executive salaries have also seen a stratospheric uptick.

Proxy filings show that from 2007 to 2015, Mylan CEO Heather Bresch’s total compensation went from $2,453,456 to $18,931,068, a 671 percent increase. During the same period, the company raised EpiPen prices, with the average wholesale price going from $56.64 to $317.82, a 461 percent increase, according to data provided by Connecture.

In 2007 the company bought the rights to EpiPen, a device used to provide emergency epinephrine to stop a potentially fatal allergic reaction and began raising its price. In 2008 and 2009, Mylan raised the price by 5 percent. At the end of 2009 it tried out a 19 percent hike. The years 2010-2013 saw a succession of 10 percent price hikes.

And from the fourth quarter of 2013 to the second quarter of 2016, Mylan steadily raised EpiPen prices 15 percent every other quarter.

The stock price more than tripled, going from $13.29 in 2007 to a high of $47.59 in 2016.

And while sales of the life-saving drug rose to provide 40 percent of the company’s operating profits in 2014, as Bloomberg reported, salaries for other Mylan executives also went up. In 2015, President Rajiv Malik’s base pay increased 11.1 percent to $1 million, and Chief Commercial Officer Anthony Mauro saw his jump 13.6 percent to $625,000.

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25 Comments on Why Did EpiPen Prices Soar?

  1. When the government bastardizes the free market and forces insurance upon the citizenry, companies like Mylan can jack up the price because they don’t have to worry about competing. They know you’ll just file it on your unconstitutionally mandated insurance, and the insurance companies don’t mind, because they are also extorting you at government gunpoint. It’s a win-win-lose scenario. Mylan wins. Insurance companies win. You lose.

  2. This is not a status symbol for us. It’s life or death for my son and he (14 yr old – allergic to tree nuts) HATES carrying it. There NOTHING ‘cache’ about puking and turning colors because you’re straining to breath, have your core temp shot up to 102 and sprout hives that last for a week. Nothing.

    When I went to fill his prescription this year they wanted $719!! Out “insurance” had negotiated it down to $619. And the auto-injector expires every year. I said ‘No way.’ A bottle of epinephrine from the Dr. and a syringe is $4.

    Yeah, they really have or backs for the $12k annual premium (large family the old fashioned way to keep up with the Somalis here).
    Thanks IOTW for posting this.

  3. Deal with the fat fingers typos 😉

    This pissed me off so bad I was on the phone with my insurance and then nurse for hours. They found a GENERIC for $379 out of pocket. “No thanks.” It’s also because the Avi-q was recalled for no reason I could discover and the company folded. Something fishy is up, imho, and it’s not just greed. It’s evil. They’re messing with meds folks need – cancer ones, too.

  4. 1453 – I did not mean to imply everyone with my statement. Certainly I do think there are some who need it, There are also others who do not, but think they do for whatever reason. I have a lot of allergies, but when I was a kid I do not ever remember anyone having a life or death experience from them. This seems to be something on the rise for whatever reason.

  5. I sure see a lot of commercials for these products. A lot of commercials for vaccinations too. ‘Even if you’ve had one, get another for added protection’…yeah right.

    Big Pharma is making money, hand over fist on these products and they have people over a barrel in many cases.

    Congress and cronyism, is directly responsible for this crap. But that’s OK, I’m sure there will be a show trial soon, with lots of testimony and witnesses, stern looks and proclamations, and then wink, wink, everything will continue as usual.

  6. The CEO is a woman. But I thought that when the women take over they were going to be the loving nurturers who care too much about people to let their greed blind them to the suffering of humanity. That’s what we were told for years by just about every single movie, TV show, book, magazine, newspaper etc.
    You mean it’s not true?
    Meanwhile I’m sure this company shows its commitment to the community by donating money to democrat politicians and invests in things like stopping global warming.

  7. “The stock price more than tripled”
    “spending on lobbying went from $270,000 to $1.2 million”
    “Legislation that enhanced its bottom line followed”
    “block grants to states that required they be stocked in public schools”
    But don’t worry, a senator lady wrote a letter to the FTC. (After she sold her stock)
    The
    Republic
    is
    Lost

  8. I was listening to the Howie Carr show late last week, and the topic was health insurance overage. A fellow called to say his epi – formerly covered – went from no co-pay to little co-pay to a charge of $500. Note the distinction between cost and charge. This is insane.

    Between the compensation packages and the preezy unaffordable care – I mean cronyism* – that made the gouging possible, it’s like they want our money before they get us dead. Anyone else tried to fill a script for generic doxycycline lately? “Supplier shortage” my ass.

    *http://www.forbes.com/sites/brucejapsen/2013/05/25/obamacare-will-bring-drug-industry-35-billion-in-profits/#335cd473b7fe

  9. So, I went to Mylan’s site. Yup. They are involved in left wing and UN policy. Manchin’s daughter marched in the “Pride” parade in Pittsburgh. They are involved in green energy projects. They are involved in pushing TPP through. They are involved in European politics.
    This is probably why Manchin’s daughter was hired.
    Connections.
    Hillary probably loves this woman.

    What’s funny, is in their booklet on the company’s standards they mention making sure medications are readily available numerous times. They give away tons of things to African nations and in India. I guess Americans can suck it.

  10. A couple of days ago my wife was diagnosed with gout (the old man’s disease HA-HA). The Doc prescribed a 10-day supply of Colchicine, an ancient medicine traced back to early Greece. Its source is the autumn crocus which also supplies the exotic and expensive spice, Saffron. I picked up the prescription yesterday morning and the cost (for 10-days) was $105–even the pharmacist choked when she saw the cost. A little Wikipedia research revealed that in 2000 the FDA placed (this ancient medicine) on the unapproved list forcing the URL Pharma to perform testing at the company’s expense. Unsurprisingly, the price as a result increased 2000%. Sound familiar? Long story short after investing 100s of millions in studies, Takeda Pharmaceutical Co. (a Japanese firm purchased URL Pharma in 2012 and eventually negotiated an exclusive right to sell in the US through 2029 with the FDA. So much for competition, so much for looking out for American interests. Our government sold us down the river yet again. We need Trump ASAP.

  11. @Rat in a Hat, Thanks for the comment but she has taken dark tart cherry for a number of years along with more other herbal alternatives than I can count. She was an RN for almost 40 years and is more in tune with eastern medicine than western.

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