Cigna drops branded EpiPen in favor of generics

• Mylan's (NASDAQ:MYL) efforts to preserve its EpiPen (epinephrine injection, USP) business with Cigna (NYSE:CI) has apparently fallen flat. The insurer just released its 2017 formulary and Mylan's branded offering will not be covered this year, Impax Laboratories' (IPXL) generic version, priced at $200/two-pack, will get the nod.
• The intense criticism the company endured over the EpiPen price prompted it to release its own generic version priced at $300/two-pack, but coming in second does not count with Cigna, unless Impax cannot meet demand, a not-unlikely scenario since it assembles the autoinjectors manually. Impax chief Mark Donohue says his firm has invested in more manufacturing lines and is "staying up with demand."
• Mylan CEO Heather Bresch still blames others for EpiPen's high price. In a presentation at JPM17, she stated that "healthcare's pricing model and the interaction between the entire supply chain needs to be revisited." Adding that "EpiPen started an important discussion and dialogue." Indeed.
• Source: TheStreet
• #JPM17
• Update: In a statement to SA, Cigna says that it will cover the generic versions offered by both Impax and Mylan and adds that the specific product choice is up the prescribing physician.