NEW YORK, NY — Mylan Pharmaceuticals CEO Heather Bresch blamed problems in the health care system as the reason the company’s two-pack EpiPen products has a list price of $608.
Bresch, the Marion County native and daughter of U.S. Senator Joe Manchin, was interviewed on CNBC Thursday as the firestorm over the more than 400 percent increase in the price of EpiPen since 2007 continues to build. Bresch used the forum to announce discount cards for residents least able to afford the medicine which is used when someone has a potential deadly allergy attack.
“First and foremost, ensuring that everybody that needs an EpiPen has an EpiPen. As a mother I can assure you the last thing that we would ever want is for no one to have their EpiPen due to price,” Bresch said.
When asked why the company chose discount counts instead of lowering the price, Bresch said the flawed health care system would prevent the real savings from reaching those who need EpiPen.
“Had we reduced the list price I couldn’t ensure that everyone that needs an EpiPen gets one. So we went around the system,” Bresch said.
The discount cards could cut the cost of the drug in half, Bresch said. Mylan makes $274 on every two-pack of the drug sold. She said the remaining $334 goes through a number of middle men who get their cut.
Bresch said something needs to be done about a health care system where those with insurance are paying higher deductibles and the full list price for needed products.
“There’s no question the system is broken. Everybody should be frustrated. I am hoping that this is an inflection point for this country. Our health care is in a crisis. It’s no different from the mortgage financial crisis in 2007. The bubble is going to burst,” Bresch said.
Responding to Bresch’s interview, Fox Business News analyst Liz Claman said Thursday on MetroNews “Talkline” Bresch completely try to deflect the controversy onto insurance companies and Obamacare.
Claman said Mylan’s significant increase in the price is not illegal but questions remain, given the importance of EpiPen, if it’s the right thing to do.
“It’s different from having some proprietary espresso machine that Starbucks has. This (EpiPen) is a life-saving drug that no one else makes,” Claman said.
Bresch said the company has given out 700,000 free EpiPens to 65,000 schools across the U.S. The company is working toward having 30 states require EpiPens in restaurants and hotels in order to help save lives.
Bresch did not directly answer questions about the more than 600 percent increase in her salary during the same time as the EpiPen cost increases. She makes approximately $19 million a year.
Claman said there remain many unanswered questions.
“People are wondering why when it does not cost $600 to make it,” Claman said.
Mylan has a large manufacturing facility in Morgantown.
Bresch’s father, Sen. Manchin, released the following statement Thursday afternoon:
“I am aware of the questions my colleagues and many parents are asking and frankly I share their concerns about the skyrocketing prices of prescription drugs. Today (Thursday) I heard Mylan’s initial response, and I am sure Mylan will have a more comprehensive and formal response to those questions. I look forward to reviewing their response in detail and working with my colleagues and all interested parties to lower the price of prescription drugs and to continue to improve our health care system.”