Page 115 - Case Lab Case Analysis

Mylan’s Response to On-Going Criticism

In August 2016, in response to mounting criticism, Mylan increased
financial assistance available for some patients to purchase EpiPens.
However, the up to $300 saving cards can only be used by a small
number of people who need the drug, and no one on Medicaid. Mylan

did nothing about the high price which is still being paid by insurers, who
ultimately pass the cost onto consumers.

Mylan promised to introduce a generic version of EpiPen, identical to the
branded EpiPen but costing $300, half the current price. But even at this
it’s still 37 times what Wallace and Krevitt estimated it costs to make.

"Our decision to launch a generic alternative to EpiPen is an
extraordinary commercial response," she said. "We determined that

bypassing the brand system in this case and offering an additional
alternative was the best option." Source: http://Newsroom.Mylan.com

In a company statement, Bresch said: "We recognize the significant
burden on patients from continued, rising insurance premiums and being
forced increasingly to pay the full list price for medicines at the pharmacy
counter. Patients deserve increased price transparency and affordable

care, particularly as the system shifts significant costs to them. However,
price is only one part of the problem that we are addressing with today's
actions. All involved must also take steps to help meaningfully address

the U.S. healthcare crisis, and we are committed to do our part to drive
change in collaboration with policymakers, payors, patients and
healthcare professionals." Source: http://Newsroom.Mylan.com

In December 2016, Mylan rolled out an authorized generic version of the
EpiPen. But this with the negative publicity impacted on Mylan’s share
price. To mitigate this Mylan announced that it would help reduce the

out-of-pocket cost of EpiPens by extending its discount programme to
more uninsured and underinsured patients. How much individuals pay
for an EpiPen prescription can depend on their insurance coverage. But

the company did not reduce the list price of EpiPens.

Nevertheless, Mylan shareholders still took a hit. Especially as Kaleo's

AUVI-Q was re-released in mid-February 2017, and CVS announced