Fortunately, I do not need an EpiPen. However, I live with someone who does. Less than 10 years ago he paid about $25 for one EpiPen; Today, he pays $250. Also, he’s forced to purchase two EpiPens at a time because of new FDA guidelines and subsequent changes by the drug manufacturer. That doubles the price to $500.

So why is the price of the EpiPen increasing when a vial of hormone epinephrine cost just $1? Political connections and sophisticated, target marketing.

Bloomberg has an excellent article on how Mylan Pharmaceuticals purchased EpiPen when it was bringing in about $200 million a year, The CEO of Mylan, Heather Bresch (formerly, Heather Manchin), is a U.S. Senator’s daughter. Through lobbying of the federal government (my assessment, not Bloomberg’s) and extensive marketing by outside experts, she and Mylan turned EpiPen into a $1 billion a year product. A look at Bresch’s profile on the Mylan website basically confirms that more EpiPen price increases are in the future as Mylan aims to reach its 2012-2018 earnings goals. And then there’s this...

A Little More About Heather Bresch

Bresch claimed she had an MBA degree she did not have and used her connections and influence to perpetuate this falsehood. She later backed away from the claim but only after a drawn out, public scandal. This is relevant to the story of how the price of this drug increased so rapidly in the hands of someone with political connections and is not afraid to use them. Heather Bresch is politically brilliant and she knows as much about pharmaceutical laws, regulations and guidelines as anyone (mostly because she studies these laws, has access to the people who write them and helps draft some herself).

The point – Heather Bresch heading Mylan Pharmaceutical Company is like placing a pharmaceutical lobbyist at the head of a pharmaceutical company. Knowledgeable—check. Connected—check. Price gouging protector—check.

Can’t Live Without It Marketing

Bresch quadrupled EpiPen sales using well-honed policy chops and by hiring the best pharmaceutical marketers to create campaigns to make EpiPen ubiquitous. If there is a public place where someone’s life could be in jeopardy due to allergies, make the facility take responsibility by insisting they stockpile EpiPens. Thanks to clever marketing and lobbying, EpiPens are seen as more medically essential than they ever were before.

• You need two, not one…
• You may need one even if you have no history of life-threatening allergies
• You should not go to a restaurant, theme park or hotel or send your kids to a school, unless they have a supply of EpiPens…
• Your life is worth more than $500, who cares if $498 of that is profit (in fairness to Pharma, several players play a part in jacking up the price of the EpiPen—insurers, pharmacies and related third parties)

Tags: Big Pharma, prescription drug costs