By Joanna McClanahan of Ramblin’ Mama
EpiPen prices aren’t the only thing on the rise. Top pharmaceutical executives at Mylan, the company who owns its patent, have also been treating themselves to millions in salary increases.
According to Food Allergy Research and Education, life-threatening allergies affect 1 in every 13 children in the United States. That’s about two kids per classroom. A potentially deadly allergic reaction, known as anaphylaxis, is treated with an emergency dose of epinephrine as the first line of defense. The EpiPen was designed to provide the necessary shot of epinephrine in the case of such severe allergic reactions.
In 2007, Mylan purchased the patent to the EpiPen and has increased its wholesale cost from $56.64 to $365.16 — a 548% price hike over 9 years (see NBC chart below). This dramatic cost rise has made it harder for people who need the life-saving device to afford it, and in turn, has lined the pockets of top Mylan executives.
According to NBC News, since EpiPen was acquired in 2007, Mylan CEO Heather Bresch’s compensation skyrocketed from $2,453,456 to $18,931,068 annually — a 671% increase. While their President, Rajiv Malik, increased his pay by 11%, amounting to $1 million annually. And Mylan Chief Commercial Officer Anthony Mauro got a 13.6% raise, amounting to $625,000 annually.
According to Bloomberg, the EpiPen accounts for 40% of Mylan’s total operating profits. Its price hike also mirrors Mylan’s stock price increase. Between 2007 and 2016, their stock price tripled, going from $13.29 per share to a high of $47.59.
In 2008, a year after the EpiPen acquisition, Mylan increased their lobbying budget to $1.2 million annually, and legislation followed. In 2010, the FDA changed its recommendation that two EpiPens be sold per package (instead of just one) and that EpiPens could be prescribed for at-risk patients, as well as for patients with confirmed allergies. In 2013, Congress even passed a law offering block grants to states that require EpiPens be stocked in public schools.
This company’s executives are the douchiest of douches. They have taken advantage of their exclusive patent on the epinephrine delivery device, exploited the dependency of severe allergy sufferers who need it for survival, and in the process, made an astronomical profit.
According to NBC News, on Monday, a coalition of U.S. Senators sent a letter to Mylan CEO Heather Bresch requesting a hearing and asking her to justify Mylan’s dramatic price gouging of the life-saving device.
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About the Author
Joanna McClanahan is an Editor at MockMom. She’s also a Contributor at Sammiches & Psych Meds and has been published on Scary Mommy. You can find more from her on Facebook, Twitter, and Instagram.