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Mylan Hikes EpiPen Prices Giving A Raise To The Executives

Update Date: Aug 24, 2016 02:32 PM EDT
Mylan Buys Abbott Laboratories Generic Drug Business For $5.3 Billion
The Interior of Mylan headquarters is seen July 14, 2014 in Canonsburg, Pennsylvania The generic drugmaker Mylan is buying Abbott Laboratories' generic-drugs business in developed markets for stock valued at about $5.3 billion. (Photo : Jeff Swensen/Getty Images)

It seems that EpiPen prices are not the only thing that has seen a raise in Mylan, as executives' salaries have also seen an upward trend.

It has been noted from proxy filings that from 2007 to 2015, Heather Bresch, Mylan's CEO's compensation has seen a hike from $2,453,456 to $18,931,068, which is a 671 percent increase.

Incidentally, during the same period, the company has also raised the EpiPen prices. The average wholesale price has seen an increase from $56.62 to $371.82, a notable 461 percent increase, reported NBC.

Notably, Mylan bought the rights of EpiPen in 2007. EpiPen is a device used to provide emergency epinephrine to stop a potentially fatal allergic reaction. Ever since Mylan bought the rights, there has been a hike in the prices.

 In 2008 and 2009, Mylan raised the price by 5 percent. At the end of 2009, it tried out a 19 percent hike. The years 2010-2013 saw a succession of 10 percent price hikes.

From the fourth quarter of 2013 to the second quarter of 2016, Mylan raised the prices by 15 percent every other quarter steadily.

Consequently, the stock prices also tripled from $13.29 in 2007 to $47.59 in 2016. Thus, as the sales and price of this life - saving drug rose to provide 40 percent of the company's operating profits in 2014, as Bloomberg reported, salaries for other Mylan executives also went up.

Mylan representatives, however, were not available for any comments on the matter, when reached out.

However, the popularity of EpiPen has also increased partially because of the new legislation, where FDA has suggested that two EpiPens should be sold in a single package since 2010.

Additionally, authorities have also made it mandatory to stock EpiPen in public schools, as they can be prescribed for at - risk patients and not just for confirmed allergy patients.

 

 

 

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