‘Lives are on the line’: Fury grows over 400 per cent EpiPen price hike

CEO Heather Bresch is copping criticism after her company pushed up the price of a lifesaving allergy shot by 400 per cent.

A 400 per cent-plus price hike in the cost of lifesaving allergy injection EpiPens is causing outrage worldwide.

Heather Bresch, the CEO of the Mylan, the pharmaceutical company behind the price hike has been labelled “the Martin Shkreli of allergies”, as anger over what is seen as a cynical repeat of Shkreli’s infamous 5000 per cent increase in the cost of HIV medication, grows.

The EpiPen price hike is under growing scrutiny in the US, with a growing number of politicians crying foul over Mylan hiking the price of a two-dose package of its product up from US$94 ($A123) nine years ago for a two-dose package to $US608 (A$799) in May.

At the same time, Bresch’s own pay has risen almost 700 per cent — she made AUD $24.8 million last year, and Mylan recently reported its quarterly revenue was AUD $3.36 billion, up eight per cent on last year.

EpiPens are used to treat life-threatening allergic reactions from bee stings, food allergies or other triggers. Mylan has a near monopoly on the product, which sufferers must replace every year.

In Australia, EpiPens fall under the Pharmaceutical benefits Scheme (PBS), Australiam Medical Association (AMA) Vice President Dr Tony Bartone confirmed, so any price hike would not be borne directly by patients.

But Dr Bartone warned if the price hike flowed through, it would be borne by the wider government health budget, and anyone needing additional supplies not covered by the PBS.

Mylan is the latest drug maker to provoke US congressional ire for steep price hikes. Shkreli and executives from the company he used to lead, Turing Pharmaceuticals, and executives from Valeant Pharmaceuticals International were called before congressional committees earlier this year to explain why they bought the rights to older drugs that lacked competition and raised the prices.

Mylan CEO Heather Bresch has been labelled ‘the Martin Shkreli of allergies’ in the wake of the EpiPen price hike. Picture: AP/Dale Sparks

The AMA, America’s largest doctors group, says “lives are on the line”, and urged Mylan “to do all it can to rein in these exorbitant costs”.

AMA president Dr Andrew Gurman said the EpiPen price increase could “keep them out of reach of people in need or force some families to choose between EpiPens and other essentials”.

Complicating the debate — and adding to the criticism — is the fact Bresch’s father is US Senator Joe Manchin, who has remained silent as his colleagues, and presidential hopeful Hillary Clinton, call on Bresch to roll back the price hikes.

Clinton has labelled the price increase ‘outrageous’ and “just the latest troubling example of a company taking advantage of its consumers”.

“Since there is no apparent justification in this case” for the EpiPen price hikes “I am calling on Mylan to immediately reduce the price of EpiPens,” Clinton said in a statement.

Earlier this week, Mylan defended the rise, citing health insurance changes resulting in higher deductible costs for many families, and saying it has established savings programs for patients and free EpiPens for schools, with around half of US schools participating.

“This current and ongoing shift has presented new challenges for consumers, and now they are bearing more of the cost” of the devices, the statement said.

But those school deals have also come under scrutiny, with politicians asking why taxpayers have to foot the bill for the increases given after Bresch and the company successfully pushed the legislation to encourage use of the EpiPen in schools nationwide.

Democratic Senators Richard Blumenthal of Connecticut and Amy Klobuchar of Minnesota addressed the price hike at press conferences alongside doctors and affected families, calling for a Senate Judiciary Committee hearing and a Federal Trade Commission investigation into possible antitrust violations at Mylan.

In a letter to Bresch, Blumental demanded Mylan drop its price.

The AMA fears the price hike will mean EpiPens are unaffordable for many in the US. Picture: AFP

“Due to Mylan’s virtual monopoly of the epinephrine autoinjector market and its unique lifesaving attribute, it is crucial that your product remains affordable for all Americans,” Blumenthal wrote. “Therefore, I demand that Mylan take immediate action to lower the price of EpiPens for all Americans that rely on this product for their health and safety.”

Clinton said pharmaceutical companies should have to explain price increases and show what benefits and value have been added.

“It’s wrong when drug companies put profits ahead of patients, raising prices without justifying the value behind them.”