Mylan launching cheaper, generic version of EpiPen

Responding to an outcry over the increased price of its allergy auto-injector EpiPen, Mylan (MYL) plans to launch a cheaper generic alternative, reported Reuters.

It has only been about a week since we first got word of the outrageous price hike for the life-saving allergy intervention medicine known simply as Epipen, and already Mylan has made another big move.

Plans announced by the company last week to provide more financial help to customers and to expand the number of low-income patients eligible to receive company subsidies will remain in effect.

At least two companies are seeking approval to sell a rival brand or generic version of EpiPen in the United States, but none are likely to be available until later next year.

Brand-name drug companies rarely start selling authorized generic versions of their own products, and when they do, it is usually to undercut an outside generic competitor. To find out how much other drugmakers are doing the same, check out our recent rundown ofprice vs. volume growth among big biotechs.

“Our decision to launch a generic alternative to EpiPen is an extraordinary commercial response”, Chief Executive Heather Bresch said Monday. However, since Mylan’s main business is generic drugs, it can essentially be the generic partner to itself. But it will have a wholesale list price of $300 for a pack of two, half the price of the brand-name EpiPen.

DAVENPORT, Iowa- Everyday Chuck Gipson double checks to make sure his ambulance is fully stocked with epinephrine, a life saving drug used to treat emergency allergic reactions.

Democratic and Republican lawmakers on the Congressional House Oversight Committee have launched an investigation into the price surge for EpiPens. None is likely to hit the USA market until well into next year. Mylan also announced it will offer $300 copay cards, up from its current $100 savings program, for the branded version of the EpiPen. “It’s a PR move”. 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.

Robert Weissman, president of the consumer group Public Citizen, said that the new move was not enough and that Mylan should just cut the price across the board. The Congress members also asked Mylan executives to brief the committee by September 6.

Mylan shares rose 1.9% in pre-market trading Monday to $43.85.