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Authorized generic of lifesaving treatment for serious allergic reactions to list for $300 per two-pack
Mylan NV on Monday said it would launch a generic alternative to EpiPen at a 50% discount after being criticized for dramatically raising the price of the lifesaving drug.
The company said it would list the authorized generic—which will be identical to the branded product—for $300 per two-pack carton. Mylan said it expects to launch the generic in “several weeks,” after labeling revisions.
“We understand the deep frustration and concerns associated with the cost of EpiPen to the patient, and have always shared the public’s desire to ensure that this important product be accessible to anyone who needs it,” said Chief Executive Heather Bresch.
She said bypassing the brand system and offering an additional alternative was the best option “because of the complexity and opaqueness of today’s branded pharmaceutical supply chain and the increased shifting of costs to patients as a result of high deductible health plans.”
Shares in the company rose 2.3% to $44.02 premarket.
EpiPen, whose list price has climbed nearly 550% over eight years, dominates the more than $1 billion market to treat serious allergic reactions because of Mylan’s effective marketing and lobbying, aggressive defense of its turf and the relatively high costs of manufacturing such sterile injections, analysts say.
A backlash over Mylan’s pricing tactics is shedding light on its grasp of the market. On Thursday, after politicians, physicians and lawmakers criticized the price of EpiPen, Mylan offered to provide more financial help to patients, saying it would cover their insurance out-of-pocket costs up to $300, from $100 previously. It also said it would expand the number of low-income patients eligible to receive company subsidies.
Mylan said Monday that both plans announced last week would remain in place for the branded product.
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Since acquiring the rights to sell EpiPen in late 2007, Mylan has increased the list price of a pack of two to $608.61.
Bernstein analysts said that while the discounts announced last week were directed at consumers, the current set is directed at payors and employers, effectively capping their costs—and it is payors who set the ultimate patient costs, through deductibles and copays.
The pair of steps Mylan is taking “will have material impact on the consumer cost of the drug.”
“They are also quite costly for the company,” according to Bernstein, which estimates the average revenue per prescription will be reduced to about $280, or 25% less revenue.
Bernstein said Mylan will likely continue to take heat for the price increases and there will be heightened pressure on the U.S. Food and Drug Administration to bring competition to the market.
“However, the debate may gradually shift to the burden of copays and coinsurance on the working middle class,” the analysts said.
Mylan to Launch Cheaper Generic EpiPen Alternative...
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