Mylan CEO infuriates lawmakers at hearing on EpiPen costs
ASSOCIATED PRESS
Mylan CEO Heather Bresch testifies on Capitol Hill in Washington before the House Oversight Committee hearing on EpiPen price increases.
WASHINGTON >> Mylan CEO Heather Bresch infuriated lawmakers as she tried — and mostly failed — to explain steep cost increases of her company’s life-saving EpiPens.
Outraged Republican and Democratic lawmakers on Wednesday grilled Bresch about the emergency allergy shot’s sky-high price and the profits for a company with sales in excess of $11 billion. The list price of EpiPens has grown to $608 for a two-pack, an increase of more than 500 percent since 2007.
In almost four hours of questioning, the soft-spoken CEO at times seemed unsure, or declined to answer directly, when asked questions about the company’s finances and profits, angering lawmakers.
“You could make this thing go away by being honest and candid but I don’t think you are,” House Oversight and Government Reform Chairman Rep. Jason Chaffetz, R-Utah, told Bresch as he ended the hearing. Afterward, he told reporters he thought she created more problems with her vague testimony.
The frustration was bipartisan. Maryland Rep. Elijah Cummings, the top Democrat on the oversight panel, compared Bresch’s answers to a game of “hide the ball.”
Defending the company’s business practices, Bresch said she wishes Mylan had “better anticipated the magnitude and acceleration” of the rising prices for some families.
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“We never intended this,” Bresch said, but maintained that her company doesn’t make much profit from each emergency allergy shot and signaled the company has no plans to lower prices.
Families who rely on multiple EpiPens to respond when their children have allergic reactions, whether at home, school or sporting events, have lashed out at Mylan in a growing public outcry. Bresch blamed the furor partly on the complexity of drug pricing.
In response to one question, Bresch acknowledged she made $18 million in salary last year.
“Sounds like you’re doing pretty well on this,” said Rep. John Mica, R-Fla.
Chaffetz, said high executive pay at Mylan “doesn’t add up for a lot of people” as the EpiPen price has increased. He said executives for the company made $300 million over five years while the list price for a pair of the allergy shots rose.
“Parents don’t have a choice,” Chaffetz said. “If your loved one needs this, it better darn well be in your backpack.”
Bresch, who displayed an EpiPen, said the company makes only approximately $50 in profit on each shot. But Chaffetz said he finds that “a little hard to believe.”
EpiPens are used in emergencies to stop anaphylaxis, the potentially fatal allergic reactions to insect bites and stings and foods like nuts and eggs. People usually keep multiple EpiPens handy at home, school or work, but the syringes, prefilled with the hormone epinephrine, expire after a year.
The company says it has distributed tens of thousands of free shots to schools and raised awareness of deadly allergies. That requires investment, Bresch said.
The Mylan executive has some familiarity with Capitol Hill — she is the daughter of Sen. Joe Manchin, D-W.Va. But lawmakers so far haven’t given any deference to her, and several other committees have called for investigations into the price increase.
Bresch noted that Mylan has said it will begin selling its generic version for $300 for a pair. That will still bring Mylan tens of millions of dollars in revenue while helping retain market share against current and future brand-name and generic competition.
The company has also offered coupon cards and has doubled the limit for eligibility for its patient assistance program. But critics have said the coupons, discount cards and patient assistance programs aren’t real solutions because many customers won’t use them or won’t qualify for them.
Republican Rep. Scott DesJarlais of Tennessee, a physician, told Bresch that she was “trying to make us feel good” about the generic version and other programs, but that he doesn’t feel good about it.
“A mother would cut off her right arm to get that drug. You chose to charge her $600 instead of cutting off her arm,” DesJarlais said. “Lower the price so they can afford it.”
Last year, more than 3.6 million U.S. prescriptions for two-packs of EpiPens were filled, according to data firm IMS Health. That brought in sales of nearly $1.7 billion for Mylan, though the company says it receives about $1.1 billion after rebates and fees paid to insurers, distributors and other health care businesses.
In the Senate, leaders of the Homeland Security and Governmental Affairs’ investigations subcommittee said earlier this month that they have begun an inquiry into the company’s pricing and competition practices. The Aging Committee requested briefings on the issue, and Iowa Sen. Chuck Grassley, the chairman of the Judiciary Committee, has written several letters to Mylan demanding answers.
14 responses to “Mylan CEO infuriates lawmakers at hearing on EpiPen costs”
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Why is no one actually explaining the “drug sale complexities”! Come on, we are educated, let us take a look at it!
That’s code for “creative accounting”. This is similar to what the oil industry does to make it virtually impossible for anyone to understand their pricing and profits. I remember when much of the gasoline refined in Hawaii was being shipped to California and sold at a lower price. At least gasoline isn’t life saving. This lady and her company should immediately be inducted to the Hall of Shame.
The law of supply and demand = greed.
If it were a new drug, they colud claim R&D recoup of costs, but the Epipen has been around for years.
Just waiting for another company to come out with a cheaper product. That will force Mylan to bring prices down to stay competitive.
Audit
Typical elitist Democrats. Mother was in on the scam too. Time for Trump. Hawaii must make the difference. Trump sends out pay checks, Clinton sends out welfare checks.
Yeah right. Do you think Trump gives a rat’s a s s when his own companies such as Trump University have scammed people for far more money and leaving them with nothing to show for it? He also stiffed numerous contractors who worked on his projects and caused many to go out of business as a result. Trump’s philosophy is, do whatever it takes to make a profit as long as you can get away with it even if it means breaking the law and hurting people in the process.
What about dead Americans who were tortured and left behind? Trump has none of that…hiLIARy does…ALONG with PAY-for PLAY, damaging America’s NATIONAL SECURITY.
les…wonder why the Dems were getting down on Sen. Joe Manchin, D-W.Va. daughter?! strange
Because Joe Manchin is a Democrat in name only. He acts and votes like a Republican. He’s called a bluedog Democrat.
An accurate cost breakdown is badly needed in this industry!
More proof that GREED cannot be regulated !! Healthcare costs are sky high in the US due to the capitalist nature of business. Obamacare is the 1st change in Healthcare since the Eisenhower Administration. Force REAL competition on the Insurance companies and costs will plummet. Malcolm Forbes, the Ultimate Capitalist as he was known, said FORBID employers from providing healthcare benefits and the Insurance companies would be forced to compete. Sounds like a great 1st step !!! Ever wonder why Insurance Companies HATE Obamacare ??? Because it reduces their OBSCENE profits !!! Insurance companies are the ONLY companies in the world that are allowed to run double books !! As a result, they always report the side that performs poorly, investment or operations. Either way the CEO and his/her cronies make millions of dollars in bonuses as they rape their ratepayers !!!
Let’s see….she claims only $50 profit per shot, sold 3,600,00 doses, should be $180,000,000 profit but at $600 per dose…$2,160,000,000…less $,1,060,000,000 give them a net of $1,100,000,000….she made a $18,000,000 paycheck…some on the board here say it’s the democrats fault or her father…
Beam me up O Lord!…beam me up!
Figures don’t lie but liars can figure…
since it was politicized here…Trump and Don King…a match made in heaven…
I in no way favor government intervention in competitive business but when it comes to a life saving measure such as EpiPens something should be done. Don’t believe for one second the company makes only $50 per dosage but even if they have to take a loss from it, it can be offset by other drugs on which they obviously make huge profits. I am a former EpiPen user but got over the allergy, thank goodness. Mylan should reduce the price and make it affordable since lives are at stake even if it takes government intervention to force them.
It seems that the key factor in the price increase for the Mylan Epipen in the US is that the company can get away with it. A little quick clicking shows that the same product (one single-use unit) is available in Canada for $101.65 in American dollars. In Denmark, it costs the equivalent of about $66 US dollars per unit.