Mylan Launching Generic Version Of EpiPen

“Sometimes companies will do this if there is a lot of generic competition say for a product they have and they know that for the only way for their branded product to succeed is to make a generic version”, Koons added. The company has subsequently been accused of price gouging, attracting the ire of consumers, lawmakers, doctors, and at least one disgruntled celebrity endorser.

At the same time, the company plans to continue selling branded EpiPen – the product makes up nearly 40% of Mylan’s operating profits, with the drugmaker having transformed it from a weak, aging franchise in 2007 to a blockbuster business with a mix of aggressive advertising, product improvements and frequent price increases. The internet drew comparisons to Martin Shkreli, who spiked the price of HIV medication overnight after acquiring the rights. Richard Blumenthal, D-Connecticut, said in a statement Monday. Since the price hikes, Mylan has raked in more than $1 billion in revenue each year. Mylan will make a generic auto-injector available in the next few weeks, which will cost $300 for a pack of two.

He noted that when the first generic drug enters the market, it usually gets a very shallow discount off the brand-name list price – maybe 5 or 10 percent.

Senator Bernie Sanders also knocked Mylan on Twitter, saying: “This isn’t a discount”.

EpiPens are used in emergencies to stop potentially fatal allergic reactions to insect bites and stings, and foods like nuts and eggs.

There is now little competition for EpiPen, with the only rival product being Adrenaclick, which carries a list price of $461.

By bringing a generic to the market now, it could preemptively steal some market share away from Teva Pharmaceuticals, which is developing its own generic EpiPen. Nor were they impressed when Mylan offered $300 rebate coupons for the device after public outcry.

But in her Senate testimony a decade ago, Bresch, who was a senior vice president of corporate strategic development at the time, called authorized generics the “single greatest threat to the viability of the generic industry going forward”.

A generic competitor was expected in 2015 but has been delayed. That’s less than half the price of a two-pack of brand-name EpiPens, which are available at Target pharmacies for about $630, according to GoodRX.

Facing public and political wrath for steep price hikes on life-saving EpiPens, the devices’ manufacturer, Mylan, announced Monday that it will offer a cheap generic. That decision did not squelch public anger, and the recent decision to move to a generic version is the latest maneuver by Mylan to save face.

How much individuals pay for an EpiPen prescription can depend on their insurance coverage. The company also doubled the eligibility for patient assistance to 400% the federal poverty level, which completely eliminates out-of-pocket costs families of four making less than $97,200.