Pharmaceutical company, Mylan (NASDAQ: MYL) CEO Heather Bresch grilled by the congressional committee for the increase of their anti-allergy device, EpiPens. Bresch argues with law makers that the company is not profiting much from the recent increased prices of now more than $600 for the lifesaving pens. Over the past years, the price was hiked more than 500 percent.
"I'm proud to be the CEO of Mylan, but I never expected to be here under these circumstances — discussing the price of EpiPen Auto-Injectors," addressed by Bresch to the House Committee.
"I've spent my entire career working to break down barriers, expand access to high quality medicines and lower healthcare costs," Bresch added. "It troubles me greatly that the EpiPen product has become a source of controversy."
"I know there is considerable concern and skepticism about the pricing of EpiPen Auto-Injectors," Bresch was due to say, according to her statement. "I think many people incorrectly assume we make $600 off each EpiPen. This is simply not true."
"In the complicated world of pharmaceutical pricing, there is something known as the 'Wholesale Acquisition Cost,' or WAC," she said. "The WAC for a 2-unit pack of EpiPen Auto-Injectors is $608. After rebates and various fees, Mylan actually receives $274. Then you must subtract our cost of goods which is $69. This leaves a balance of $205. After subtracting all EpiPen Auto-Injector related costs our profit is $100, or approximately $50 per pen."