To read the full article on NBCNews.com, click here.
Mylan says middlemen and suppliers have forced them to jack-up the prices on EpiPens by hundreds of dollars, but two industry insiders say the company pays no more than $30 per device.
Meanwhile, some patients are forced to pay a little over $600 out of pocket for a two-pack of the lifesaving medication. Mylan sparked outrage last month when it was revealed the company had hiked up costs for the drug by over 400 percent since it acquired the brand. At the same time, CEO Heather Bresch's salary soared over 600 percent to nearly $19 million in 2015.
According to Kevin Deane, “The base components for each EpiPen, including the plastic cap, tube, and needle, might cost between $2 to $4 to purchase.”
How organisations can stop wasting their best ideas
Kevin adds, “Additionally, based on industry norms, Mylan would have to pay a licensing fee to companies involved in research and development of the device. This amount might generally multiply the price that Mylan pays Pfizer's wholly owned subsidiary Meridian Medical Technologies, which manufactures the epinephrine auto-injector between two and five times.”
As Kevin explains, “What they've been doing is they've been making little updates to it, refinements to make it work better. But it essentially is the same core technology that was there for many years.”