Page 150 - Case Lab Case Analysis
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The introduction of a generic alternative of the EpiPen by
Mylan was unusual because the branded version was still
under patent and other rival treatments failed to get
regulatory clearance until very recently.
EpiPen generates annual sales of $1to 1.5bn for Mylan. But
the company’s introduction of an alternative to this higher
cost, primary product, runs the risk of making it obsolete
and thereby reducing revenue flow and company
profitability even further.
Part of the problem is that Mylan did and does continue to
receive attention from both Congress and the FDA over its
price increases and the need to bring competition to the
market. It is notable that Mylan has not reduced the price of
EpiPen but rather increased it continually.
