EpiPen–The Secret Reason For The Price Increases
The pharmaceutical industry has been guilty of producing dangerously defective products for years. In May, a U.S. Court ordered Johnson and Johnson to pay 55 million in compensatory and punitive damages to a consumer who developed ovarian cancer because the company baby powder contained talc- a well know carcinogen. Talc is similar to asbestos and the company hid that fact from consumers. What could be worse—the EpiPen price gouging and the greed of the overpaid Mylan Pharmaceutical C.E.O. Heather Bresch. Her pay rose over 600 per cent as the EpiPen price was dramatically increased.
Consumers outraged by EpiPen Prices
EpiPen is a life-saving injection device for people with severe allergies. Recent price increases have sparked outrage among consumers who worry they won’t be able to afford the pens. Families with small children are most at risk. The current price is about $600.00 a dose. This price increase is a result of the actions of the executives of Mylan, the pharmaceutical company that acquired the product in 2007. In 2007, a consumer could buy two pens for less than $100.00. In 2009, a pharmacy paid $103.50 for a set. By July 2013, the price was up to $264.50, and it rose 75 percent to $461.00 by last May. This May the price spiked again to $608.61, according to data provided by Elsevier Clinical Solutions’ Gold Standard Drug Database.
The New York Times and others recently revealed the price increase is a result of the greed of the executives of Mylan. From 2007 to 2016, Mylan also increased the price of EpiPens by 461 percent, from around $100 for a package of two pens to around $600.
Heather Bresch The CEO of Mylan received 32 million in 2015. As part of her deal, she also had Mylan shareholders pay 5.8 million she would owe in taxes. She and her fellow executives will be able to reap substantial riches if Mylan’s earnings and stock price rise. This explains why Mylan rose the price of the EpiPen dramatically. The EpiPen accounted for 1 billion of Mylan’s 9.4 billion in revenue in its most recent year.
What can you do?
A petition to Congress protesting the price increase, called “Stop the EpiPen Price Gouging,” has emerged on social media. It has collected more than 142,000 signatures. And on Tuesday of this week, Mylan was hit with a class action lawsuit over EpiPen pricing.
In general, manufacturers of drugs have a duty to test drugs and medicines before they are offered to the public based on guidelines and industry standards provided by the Food and Drug Administration. In some circumstances, if the medicine provides adequate warnings, the manufacturer may have a defense to a claim brought by an injured consumer. Generally, drug manufacturers must warn of known dangers of the drug but are not required to warn of unknown dangers. The duties shared by drug manufacturers can include a continuing duty to provide updates concerning known adverse effects of a drug.
We Are Here To Help
If you ever need help due to a defective product you can always contact Wall Huntington. We can and have held the manufactures of defective products responsible for the damages and injuries their defective products cause our clients. Products liability lawsuits may commonly be based on pharmaceutical drug liability. When consumers are injured by a defective drug, the consequences can be serious. Drug manufacturers may be responsible when their drug injures a consumer. Additional parties may also be liable for the harm suffered by the victim depending on the circumstances. Contact the attorneys at Wall Huntington, in Wichita, for a free consultation at 316-265-6000 or send us an on-line inquiry on our website.
