House leaders on Wednesday blasted the CEO of EpiPen’s manufacturer, which raised the price of the allergy drug by 400 percent, saying that the sharp price increase could endanger the lives of their constituents.
The House Oversight and Government Reform Committee held a hearing Wednesday that featured the head of generic drug maker Mylan, Heather Bresch. Lawmakers criticized the company for raising the price of the EpiPen by more than 400 percent since acquiring it in 2007.
“They raised the prices, I believe, to get filthy rich at the expense of our constituents,” said Rep. Elijah Cummings of Maryland, the top Democrat on the committee.
Committee Chairman Jason Chaffetz said he was spurred to act after hearing from families who are afraid about the affordability of the life-saving allergy drug.
“Trying to drive into the depths of individual drug pricing is not something I set out to initially do,” he said in his opening statement. “We are talking about tens of millions of Americans who have to have [the EpiPen].”
Chaffetz also wasn’t impressed with the moves that Mylan put together in response to the public outrage.
Mylan offered a $300 discount off the $600 price tag. It also expanded its patient assistance programs.
After those moves did little to quell public anger, Mylan announced it is making a generic version of its branded EpiPen product. The generic will cost $300 but has sparked questions from lawmakers about access to the cheaper version.
“Suddenly feeling the heat, feeling the pressure, Mylan offered a generic version and cut the price in half,” Chaffetz said. “That does beg the question, what was happening with that other $300?”
Lawmakers have been angry that Mylan has decided not to lower the price of the drug, which has steadily risen by 400 percent since the company acquired it in 2007.
Cummings noted that action on drug prices will be more important than an act of contrition from Mylan.
“Yesterday, someone asked me if I wanted the head of Mylan to apologize today,” he said. “I think that would be appropriate, but it will not cause Mylan to treat my constituents fairly and bring down the prices to where they should be.”
Mylan’s CEO pushed back against the pricing anger in her opening statement.
“Looking back, I wish we had better anticipated the magnitude and acceleration of the rising financial issues for a growing minority of patients,” according to Bresch’s opening statement. “We never intended this.”
Bresch said during her opening statement that the drug maker will devote $1.2 billion in research and manufacturing facilities in 2016 for all products. She added Mylan has spent $1 billion on improving the EpiPen since the company acquired it in 2007.
