Epipen and Milan

This is a topic that is currently trending in the world of medicine for a number of reasons, and for that, it requires a little background information. (Seriously, enter "Milan Epipen price hike," into any search engine, and watch how much pulls up)

"Mylan N.V. is an American global genericand specialty pharmaceuticals company registered in the Netherlands, principal executive offices in Hatfield (UK) and global headquarters Canonsburg, Pennsylvania."
Mylan - Wikipedia, the free encyclopedia

One of Mylan's top products is the Epipen. The name "Epipen" is similar to "Kleenex" in that the brand name has slowly replaced the actual term. Basically, an Epipen is a small, injector that is designed to be used to inject a person with the drug known as epinephrine.
Epinephrine is the only known (or, most available) drug for controlling allergic reactions. After all, not all food allergies result in hives or itchy skin, but, rather, anaphylaxis in some cases.

The controversy is currently over the price of Epipens. There are no competitors currently on the market, due to a recall of one brand last November, and lack of other possible competition because of FDA denial. Since 2009, the price for one Epipen has increased by four hundred percent.

It is a product that must be purchased by the millions of families with food allergies, but it has gotten to the point that many families cannot afford $600 per set (each set expires after one year or less). Milan claims that the price of manufacturing has dramatically increased, and they have a relatively low profit in comparison.

So, is Milan in the right, or the wrong in this case?

 

Just google how much epipens cost to make
There is only a few dollars worth of adrenaline in that pen
The cost to make that pen is about $30, give or take.
Even if we push that to 50 to get rid of any guesswork, there is no reason why this pen should cost more than $100.
I dont know what they cost before, but I do know that peoples lives should mean more than how much cash these business people can stick into their pockets.

 

It's called monopoly. This is another one of the cases where it becomes a problem. Milan has the right to operate business in whatever ways they want, including increasing prices, however, since this is the only company that does that, it affects people's lives, especially those who cannot afford outrageous amounts. I think that this is too outrageous and Milan should compromise a price.

~Natsu

 

Here is how Milan's CEO responded to the criticisms in a Federal Court:
Bresch argued that the problem of drug prices isn't with Mylan or even the pharmaceutical industry, but instead with a health-care system that often requires consumers to pay not just insurance premiums also out-of-pocket for prescription medications, sometimes to the full retail price.

That phenomenon, Mylan has said, has been exacerbated by the increase in the number of high-deductible health plans.

"The patient is paying twice," Bresch said. "They're paying full retail price at the counter, and they're paying higher premiums on their insurance. It was never intended that a consumer, that the patients would be paying list price, never. The system wasn't built for that."

"I am hoping that this is an inflection point for this country," Bresch said. "Our health care is in crisis. It's no different than the mortgage financial crisis back in 2007."

"My frustration is there's a list price of $608," said Bresch, who said that price reflects a system where there are "four or five hands that the product touches and companies that it goes through before it ever gets to that patient at the counter."

She was referring to the fact that after Mylan, intermediaries including wholesalers, retailers and pharmacy benefit managers add to the ultimate cost, and hence can increase the amount paid by patients.

"That $608 is a list price," Bresch said. "What Mylan takes from that, our net sales is $274, so $137 per pen," she said, referring to the fact that EpiPens are sold in packages of two devices.
Mylan CEO Bresch: 'No one's more frustrated than me' about EpiPen price furor

So, Milan says they make a very small profit, and the issue is with the system, but can't explain how they plan to make a generic version for half the price, and still make a profit.

 

A "Life hacks" group made a tutorial to easily make one for around 15-20$.

 

It all depends on how much it costs to get the product to the customer. With all the regulation and bureaucracy, I'm inclined to believe that it's a lot.

The issue isn't how much the product costs to make, it's all the additional expenses that come with getting it into the country (very expensive).

Well, if the business can't make a profit, it won't exist, and nobody gets anything.

Yep. The pharmaceutical business is just so damn complicated.