What EpiPen's nearly $530 price difference says about US & Britain varying policies

Practice Management

A consumer in the United States would shell out much more money for an EpiPen two-pack than a Britain consumer, with the drug priced at more than $600 in the United States, according to Bloomberg.

In England, the state-funded National Health Services provides a similar pair of injections at $69, meaning consumers in America pay $531 more. Bloomberg reports the price difference speaks to the larger issue of how the United States and Britain work with pharmaceutical companies differently to reign in costs for consumers.

 

Earlier this month, Mylan CEO Heather Bresch faced questions from heated lawmakers as to the pricing of EpiPen. Legislators pressed Ms. Bresch on her $18 million salary, despite the executive trying to speak about Mylan's efforts to offer Epic generics. When Ms. Bresch said Mylan's profits are falling, House Oversight Committee Chairman Jason Chaffetz (R-Utah) said, "This is why we don't believe you." He said the profits Mylan accrued from its $300 generic actually surpassed the profits it made from its $608 version on the drug.

 

Public Citizen released a report on Sept. 20 which found that Mylan charges Americans more than six times more than other wealthy nations for EpiPen, indicating the drug can be profitable for the company when sold at reduced prices. In France, Mylan sells two EpiPens for less than $100 dollars and a little over $200 in Germany.

 

When probed as to why Mylan increased EpiPen's price in the Untied States while lowering the price in the United Kingdom, a Mylan spokesperson said in an email, "Each market has its unique considerations that may impact costs."

 

In the United Kingdom, government and industry officials negotiated an agreement that placed a cap on health service's spending and mandates pharmaceutical companies repay any amount that surpasses the fixed cap. Comparatively, U.S. intermediaries, such as pharmacy benefit managers, have an integral role in dictating drug prices. While benefit mangers say they are negotiating the prices on behalf of payer sand employers, many Americans lack insurance and even those with insurance have trouble affording such high prices.  

 


Additionally, Mylan has few rivals in the United States, allowing the company to shoot up its prices. Due to the limited competition, the FDA is helping Kaleo launch products as EpiPen alternatives. Amena Warner, head of clinical services at Allergy UK, a non-profit group, said, "I'm amazed, absolutely amazed. It must make the patients feel very uncertain and very frightened. Fortunately in the U.K., that's not really an issue."

 

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