Hillary Clinton blasts 'outrageous' explosion in EpiPen pricing, and drugmakers' stocks are feeling the heat
(Hillary Clinton.Andrew Harnik/AP Photo)
Hillary Clinton on Wednesday called the skyrocketing price of the EpiPen "the latest troubling example of a company taking advantage of its consumers," sending drugmakers' stocks tumbling in the afternoon.
EpiPen auto-injectors are life-saving devices for people who have severe allergies that could lead to anaphylactic shock. While the drug contained in EpiPens is cheap, the device itself, which is designed to be user-friendly and immediately dispense the correct dosage of the drug, is exorbitantly expensive.
The list price for a two-pack of the pens is more than $600, according to Truven Health Analytics, up from $93.88 in 2007.
"Over the last several years, Mylan Pharmaceuticals has increased the price of EpiPens by more than 400%," Clinton noted in the statement. "They're now charging up to $600 for a two-EpiPen set that must be replaced every 12-18 months. This both increases out-of-pocket costs for families and first responders, and contributes to higher premiums for all Americans and their employers."
The statement called the price hikes "outrageous."
Senators — including Chuck Grassley of Iowa, Amy Klobuchar of Minnesota, and Richard Blumenthal of Connecticut, along with members from the Senate Special Committee on Aging — have all chimed in over the past few days to ask for more information about how the drug's price has been set.
Since Clinton issued the statement on Wednesday afternoon, the Biotechnology Index has fallen more than 3%, while Mylan was down more than 5%.
(Google Finance)
This is similar to what happened last year, when Clinton tweeted out an article regarding the sudden 5,000% price increase of the drug Daraprim. Biotech companies and investors have been waiting to see how this election plays out to see what kind of pressure the next president places on drugmakers to control prices.
"I believe that our pharmaceutical and biotech industries can be an incredible source of American innovation, giving us revolutionary treatments for debilitating diseases," Clinton said. "But it's wrong when drug companies put profits ahead of patients, raising prices without justifying the value behind them."
Clinton called on Mylan to "immediately reduce the price of EpiPens," and noted her plan to require pharmaceutical manufacturers to "prove that any additional costs are linked to additional patient benefits and better value." Clinton said that there was "no apparent justification" for the high price of EpiPens.
Price increases have helped transform the EpiPen into a billion-dollar business despite it being a decades-old product. A lack of competition has allowed the rapid increase in price because patients simply don't have many other options.
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