Pharmaceutical companies have received a bad reputation because of the high prices they charge for their medications. The latest demonstration is making the news with Mylan Pharmaceuticals and its outrageous increase in the cost of EpiPens. Mylan Pharmaceuticals has raised the price of the life-saving EpiPen to $608 for a two-pack, which equates to a 500 percent increase in price.
Upset Consumers
Consumers are upset and rightly so. The pharmaceutical company in the center of the controversy, Mylan Pharmaceutical, makes the EpiPen. The EpiPen is a lifesaving device used to prevent anaphylactic shock in response to an allergic reaction. EpiPen is often used with children who have severe food allergies and individuals with allergic reactions to certain insects. Because the EpiPen is such an important part of saving someone’s life in a crisis situation, it has brought to light the company’s price increase and the monopoly-like control the product has on the market.
Heather Bresch, the CEO of Mylan Pharmaceuticals is taking the heat of the backlash. Increasing the price by 500 percent in less than a decade has triggered an investigation by the House Oversight Committee. The committee has requested that company provide documentation of the 15 different price increases for the EpiPen that have occurred since 2008; however, it has not done so yet.
As the CEO, Ms. Bresch has received almost $19 million in the past year and $54 million over three years, according to a report from CNN. All the while, consumers cannot afford the $608 price tag of the EpiPen. Even though the company has provided $300 coupons to consumers rather than cutting the price, it is still out of the reach of many people who need it.
While Bresch has stated that it is the supply chain for healthcare that caused the need for the price increase, the profit margin for the product went from nine percent to 55 percent by 2014. Mylan Pharmaceuticals is not the only company engaging in price gouging. They are just one example of how medicine has become big business.
Defending Mylan Pharmaceuticals price increase is another pharmaceutical CEO who has earned a negative reputation, Martin Shkreli. Shkreli raised the price of an AIDS medication a jaw-dropping 5,000 percent in a single day. The pill went from $13.50 up to $750. He now defends Bresch and her company in their price increase for the EpiPen.
A Bigger Problem
The EpiPen has brought attention to a growing problem involving pharmaceutical companies. Many times, they offer the only product to treat a condition. As they raise their prices, patients with high deductibles can no longer afford the life-saving treatment they need.
At the same time, these same products command a much lower price in other countries. The broken system in the United States is causing consumers to suffer from the lack of much-needed medicine because they can no longer afford the ridiculous cost. The greed of these companies continues to result in high drug prices with no end in sight for consumers.
Defective Drug Attorneys in Louisiana
The greed of pharmaceutical companies is not only limited to charging high prices for drugs. Many companies rush drugs to market without proper testing while other companies hide test results in order to sell drugs. The defective drug attorneys of The Olinde Firm represent clients in Louisiana and throughout the United States who have been injured by dangerous drugs. If a company is negligent, it should be held accountable if a dangerous drug injures someone.
Contact our office at (504) 587-1440 or 1-800-587-1889 to schedule a free legal consultation with a defective drug attorney to learn more about how we can help you recover compensation for your injuries.