- Mylan N.V. (NASDAQ:MYL) is the latest pharma firm to be in the crosshairs of the government over aggressive price hikes. Shares were off 5% today on triple normal volume in response to the news that Iowa Senator Chuck Grassley has officially requested an explanation from management why it has increased the price of its EpiPen (epinephrine injection). Since acquiring the auto-injector in 2007, the company has jacked the price up almost 400%. The product is used to treat allergic reactions in an emergency setting.
- The company's behavior with EpiPen pricing could be construed as a profit-grabbing strategy ahead of generic competition which could capture as much as $200M of EpiPen's sales say analysts. Product pricing will most certainly fall when generic alternatives are available.
- Teva Pharmaceutical Industries (NYSE:TEVA) hit a bump in the road earlier this year with its generic version of EpiPen when the FDA rejected its marketing application. It now expects to launch its product in 2017 at the earliest.
- Previously: Teva's generic EpiPen pain is Mylan's gain (March 1)