Lawsuit filed against EpiPen manufacturers for alleged “price gouging”

A lawsuit has been filed against a medical manufacturer who are alleged to have charged higher prices for its asthma medication.

High charges for asthma medication is a hot topic here in the U.K., with many believing it’s not something people should have to pay for.

The EpiPen – the medication at the centre of the allegations – is an injector pen that contains epinephrine; a chemical that narrows blood vessels and opens airways in the lungs. It’s frequently used to treat severe allergic reactions (anaphylaxis) against insect stings or bites, foods, drugs etc. It’s a device that can save lives.

Lawsuit

The lawsuit, brought by Self-Insured Schools of California, accused medical manufacturer Mylan and Sun Pharmaceutical Industries of working to charge higher prices for the EpiPen.

This is the second time this year the company has been accused of price gouging – a term where companies increases the prices of goods or services to a higher level than what may be considered as reasonable. In other words, raising a price that could be considered as exploitative for consumers in efforts to simply increase profits.

In April this year, the company was named in a group action for allegedly being dishonest and fraudulent in their business dealings. A lawsuit was launched against Mylan, claiming the company had engaged in illegal practices to spike the prices of its EpiPen over the past ten years.

The lawsuit alleged that Mylan violated consumer protection laws. It also alleged that consumers only paid approximately £68 a decade ago. Since then, consumers have paid up to 17 times more for the EpiPen.

Allegations

Steve Berman, legal representative for three named claimants, highlighted Mylan’s allegedly dirty tactics:

“Mylan has tried every trick in the book to avoid taking accountability to the millions of people who are living without the EpiPen they need to prevent a life-threatening allergic reaction.”

The case alleges there has been a “574 percent EpiPen price hike”, which is a staggering figure to even comprehend. How are the most needy able to afford prices like that?

Defence?

Mylan hasn’t offered a legitimate reason for the price hike. Mr Berman told CNBC that the price they charge consumers bears little correlation to the actual cost of producing the Epipen. So, the question left to answer is:

“…why is Mylan charging such extortionate prices for a medical device that is used by millions of people?”

CEO, Heather Bresch, tried to defend the price hike; but when you see that EpiPens account for approximately 40% of the company’s profits, and Mrs Bresch’s salary amounts to around 14 million, you could argue that it’s not surprising that she’s all for the price hike…

Image Credit: http://gomerblog.com/2016/08/epipen-shock-prices/