Senate panel opens inquiry into EpiPen pricing

The most renowned example was Turing Pharmaceuticals’ 5,000% price hike for its antiparasitic drug, Daraprim, causing CEO Martin Shkreli to become the “most hated man in America”. Unlike other countries, the USA government does not regulate drug prices, thus allowing drug manufacturers to charge whatever they think the market will bear.

Morgan Stanley singled out the drugs that had increased more than 50% in price since 2009, and in particular those that have gone up at least 200%-400%, a group of drugs that haven’t received as much attention as the EpiPen or some of Valeant’s portfolio that’s been called out over the a year ago.

The EpiPen is a pen-shaped device containing epinephrine, or adrenaline, that is self-administered in a person’s thigh.

Without having an EpiPen readily available, people exposed to certain allergens run the risk of anaphylactic shock, in which symptoms quickly escalate from hives and skin swelling to difficulty breathing, rapid heart rate, convulsions and, potentially, death.

A set of two EpiPens – manufactured by Pennsylvania-based Mylan – can now cost consumers more than $600. It has also said it recoups less than half the list price for EpiPens. There are several alternatives that contain similar active ingredients, but most doctors will not prescribe them due to differences in the chemical formula. The price of the EpiPen, the injected emergency medication used to treat severe allergic reactions to foods such as nuts, eggs and shellfish as well as bug bites, has increased substantially. It was granted FDA approval to make a generic EpiPen, but was blocked earlier this year after Mylan successfully argued that Teva’s device was not identical, and was therefore unsafe.

Representatives for Mylan, the pharmaceutical company that makes EpiPens, refused to attend the hearing, according to the committee chair. STAT recently reported that participants of Mylan’s EpiPen4schools program had to agree not to purchase EpiPen-like products for 12 months in order to get a discount. Critics claim that these vouchers aren’t good enough because they do not apply for insurers and government programs.

New York Attorney General Eric Schneiderman announced Tuesday he has launched an antitrust investigation into the skyrocketing cost of the epinephrine auto-injector called EpiPen.

“The Permanent Subcommittee on Investigations has opened a preliminary inquiry concerning Mylan Pharmaceuticals’ pricing and competition practices with respect to the EpiPen”. Rob Portman (R-Ohio), chairman of the investigations subcommittee, and Claire McCaskill (D-Miss.), its top Democrat, said, “Our review of this matter will be robust, thorough and bipartisan”.

With the help of these laws, Mylan’s EpiPens are at 63,000 schools nationwide.