EpiPens are arguably one of the most important devices for those to carry who suffer from life-threatening allergies. Recent issues of price inflations revolving around the EpiPen have been beginning to surface in the media. This certain inflation has made the public more aware of the pharmaceutical world and the loopholes of pricing. The issue of pricing in the pharmaceutical world is nothing new, but is also not very publicly known. Big name companies have been increasing their prices over the years to the point of being almost impossible to afford without the aid of financial assistance programs or insurance. Mylan Pharmaceuticals is one of those big name companies with a near monopoly on their auto-injector device, the EpiPen. Mylan pharmaceuticals
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The EpiPen is an auto-injector pen that allows a quick and easy injection of epinephrine into a person 's leg whom is suffering an allergic reaction. Our bodies create a hormone, epinephrine (more commonly known as adrenaline), that increases blood flow to muscles during “fight-or-flight” responses. While at Survival Technology, Incorporated, “Kaplan sought to create a device intended to quickly inject a user suffering from anaphylaxis -- a potentially fatal allergic reaction -- with an emergency dose of epinephrine” (Cahill 1). The purpose of this design was so that one could easily inject the stick of epinephrine into one 's thigh which then prompted the spring-loaded mechanism to push a needle that contained the epinephrine into the user’s bloodstream. As the design was being finalized, Kaplan was approached by the U.S. Department of Defense to create a device that would essentially do the same thing as the EpiPen, but instead of epinephrine, this device would inject an antidote for nerve gas. This design became known as the ComboPen and was used by the Pentagon before becoming the EpiPen. The EpiPen was approved in 1987 by the FDA. Kaplan left Survival Technology not too long after the creation of the EpiPen and left before the success of his invention really took off. Many companies owned the EpiPen before Mylan Pharmaceuticals. The first …show more content…
Tom Cahill, author for US Uncut, wrote an article regarding statements made by Heather Bresch. Bresch states that the price inflations are due to factors in staying competitive with other drug companies. In order for Mylan to remain competitive, they relocated their company to the “Netherlands to lower its effective tax rate, despite its operational headquarters remaining in Pennsylvania” (2). This accounting trick is known as tax inversion. Bresch supported the inversion with an interview with the New York Times stating “You can’t maintain competitiveness by staying at a competitive disadvantage… I mean you just can’t” (2). Many companies and consumers do not agree with this accounting loop, including Bresch’s own father who said that Mylan’s inversion should be illegal. The issue at hand revolves around the pricing of the EpiPen. In an article by Kelly Phillips Erb, Erb states that when Mylan first obtained the EpiPen back in 2007, the cost of the device was around $100.00 for a two-pack. In just nine years, the price of the EpiPen inflated by 400% and now stands at $600.00 per pair. This price inflation was the result of Mylan’s chief competitor, Sanofi, recalling their product due to miscalibration issues. Without the competition, Mylan was able to make several pricing increases in the following months. In another
The EpiPen is an auto-injector pen that allows a quick and easy injection of epinephrine into a person 's leg whom is suffering an allergic reaction. Our bodies create a hormone, epinephrine (more commonly known as adrenaline), that increases blood flow to muscles during “fight-or-flight” responses. While at Survival Technology, Incorporated, “Kaplan sought to create a device intended to quickly inject a user suffering from anaphylaxis -- a potentially fatal allergic reaction -- with an emergency dose of epinephrine” (Cahill 1). The purpose of this design was so that one could easily inject the stick of epinephrine into one 's thigh which then prompted the spring-loaded mechanism to push a needle that contained the epinephrine into the user’s bloodstream. As the design was being finalized, Kaplan was approached by the U.S. Department of Defense to create a device that would essentially do the same thing as the EpiPen, but instead of epinephrine, this device would inject an antidote for nerve gas. This design became known as the ComboPen and was used by the Pentagon before becoming the EpiPen. The EpiPen was approved in 1987 by the FDA. Kaplan left Survival Technology not too long after the creation of the EpiPen and left before the success of his invention really took off. Many companies owned the EpiPen before Mylan Pharmaceuticals. The first …show more content…
Tom Cahill, author for US Uncut, wrote an article regarding statements made by Heather Bresch. Bresch states that the price inflations are due to factors in staying competitive with other drug companies. In order for Mylan to remain competitive, they relocated their company to the “Netherlands to lower its effective tax rate, despite its operational headquarters remaining in Pennsylvania” (2). This accounting trick is known as tax inversion. Bresch supported the inversion with an interview with the New York Times stating “You can’t maintain competitiveness by staying at a competitive disadvantage… I mean you just can’t” (2). Many companies and consumers do not agree with this accounting loop, including Bresch’s own father who said that Mylan’s inversion should be illegal. The issue at hand revolves around the pricing of the EpiPen. In an article by Kelly Phillips Erb, Erb states that when Mylan first obtained the EpiPen back in 2007, the cost of the device was around $100.00 for a two-pack. In just nine years, the price of the EpiPen inflated by 400% and now stands at $600.00 per pair. This price inflation was the result of Mylan’s chief competitor, Sanofi, recalling their product due to miscalibration issues. Without the competition, Mylan was able to make several pricing increases in the following months. In another