Thursday, August 25, 2016
There is little doubt pharmaceutical companies are sparking self-induced crises in their drug pricing policies. The latest uproar is over the EpiPen used by people with peanut and other severe allergies. The ingredients in the pen cost $10 but Mylan is selling the pens in packs of two for $600. The company has tried to justify its huge pricing differential but no one is listening. It has brought this PR disaster on itself, and it will be pilloried until it lowers its price. Mylan is not alone, however. New drugs coming on the market are costing $100,000 or more, and there is no way for consumers to pay for them without health insurance. Health insurers in turn are fighting back but to no avail. There are no generic drugs for some of these medicines at the current time. Pharmaceutical companies are getting a bad name because of this aggressive pricing -- and they deserve it.