Antitrust investigation launched into Mylan and the EpiPen scandal
pharmafile | September 7, 2016 | News story | Research and Development, Sales and Marketing | Mylan, US, antitrust, epipen, investigation, lawmakers, scandal
The New York attorney general has commenced an investigation into Mylan Pharmaceuticals, after an initial review indicated that the company may have inserted potentially anticompetitive terms into its EpiPen sales contracts with numerous local school systems.
Mylan has been subject to an extremely high level of criticism and scrutiny in recent weeks, after it emerged that the price of the epinephrine autoinjector had risen 400% since 2008. CEO Heather Bresch, in particular, came in for some stinging criticism as her salary has risen over 600% in the same period.
The generic allergy drug injector has little competition in the US market, which has left Mylan free to dictate its own price. Presidential candidate Hillary Clinton has outlined her own plan to tackle “unjustified price hikes” in the wake of the Mylan scandal.
Attorney general Eric Schneiderman says: “No child’s life should be put at risk because a parent, school, or healthcare provider cannot afford a simple, life-saving device because of a drugmaker’s anti-competitive practices. If Mylan engaged in anti-competitive business practices, or violated antitrust laws with the intent and effect of limiting lower cost competition, we will hold them accountable.”
A lawsuit has also been filed against Mylan in an Ohio country court, where the claimant has alleged that sharp price hikes on EpiPen violated the state’s consumer protection law.
The complaint says: “The outrageous, unconscionable and immoral high prices set by [the] defendant is nothing more than price gouging.”
In addition, US House oversight and reform committee members Jason Chaffetz and Elijah Cummings have requested that Bresch submit documents relating to the price increase.
They indicate: “While families and schools are struggling to keep up with your company’s unreasonable price increases, Mylan has profited richly from its pricing strategy. Your company made EpiPen its first billion-dollar product.”
The committee has requested that the required documents be made available no later than September 12th.
Sean Murray
Related Content
Amgen opens new biomanufacturing facility in Ohio, US
Amgen has announced that it has opened a new manufacturing site in Central Ohio, US. …
Expansion for first FDA-approved video game for ADHD treatment
Akili Interactive has announced the expansion of its prescription video game treatment, EndeavorRx, with the …
Pfizer to pay $345 million in EpiPen lawsuit
Pfizer has reached a $345 million settlement over consumer claims they overpaid for EpiPens as …
