We don't have to wait for the market to get to equilibrium. It's already there. There are at least two viable alternatives to Epipen - Adenaclick (certainly the better alternative) and a basic syringe. Both are available immediately and both cost less.
Epi-Pen Cost
- Thread starter Mojo88
- Start date
We don't have to wait for the market to get to equilibrium. It's already there. There are at least two viable alternatives to Epipen - Adenaclick (certainly the better alternative) and a basic syringe. Both are available immediately and both cost less.
Thanks!
Leaving aside the question of whether a market approach is the right one, I think if the market were truly at equilibrium, nobody would be paying $400-$500 for a product that does the same as something cheaper. The fact that one company is still making what might be regarded as supranormal profit is a sign to me that the market is not yet at equilibrium: it would have to compete at around the same price point as other offerings.
Sure, there is some lag as price information moves through the system. Epipen also has some advantages (or at least perceived advantages), and people are willing to pay more for it, even in the face of alternatives. Indeed, if they're charging too much for it to sustain the volume they want, they'll be lowering the price soon enough. Until then, get the word out about Adenaclick!
I should add that Mylan has been raising the price over time (about a year). It's unlikely they would continue raising the price in the face of sales losses. They're trying to find out what the market will bear..and stepping up the price is the way to do that.
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A 671% wage increase from 2007 to 2015.
And she deserves it. She, and the other leadership bought the rights to the product line, and realized the full market potential of the product (something the prior owner clearly failed to do). In doing so, significantly raised the profits of Mylan (at least as a percentage...it's still not a hugely profitable company in the grand scheme). If those salaries are "too much", the stock holders will let them know about it, I can assure you. As yet, the stockholders seem to be happy with the enhanced performance of the company, based on the 5 year stock history.
So there is still over a 150% price difference between products which essentially do the same thing, albeit with the opportunity for some degree of price premium for an actual or perceived advantage.
That sounds a very long way away from market equilibrium to me.
The product function is only part of product differentiation. Product marketing is also part of it. They've spent significantly on marketing the Epipen brand. There may ultimately be a sustainable price difference based on that alone. But as they've been raising the price fairly slowly (sorry I was incorrect on the time span..it's actually been increasing since about 2009), I think they may well be able to sustain it. I don't know, maybe when the company making Adrenaclick gets their marketing act together, they'll do better at pulling sales from Mylan. Until then, who knows..the market will decide. Until that time, anyone can go grab Adrenaclick if they want to. There's certainly been enough press about the issue to get the word out.
In addition to profit margin concerns, a significant driver of increased Epi-Pen costs are skyrocketing insurance costs. Every use of an Epinephrine auto-injector carries a finite risk of a dangerous and potentially fatal intravascular injection. Also, the use of these auto-injectors are used in scenarios where a fatality may occur, even when properly deployed. Also-also, they are usually not used by trained medical providers. The convergence of this triumverate of risks factors makes for a huge and ongoing litigation risk.
When an individual is experiencing an anaphalactiod reaction, there is usally plenty of time for them to prepare a standard injection. I train my patients and their family members to administer an intramuscualr injection, and give them a prescription for Epi vials and syringes. The advantage is that in addition to having an Epi-Pen that has a long shelf life, they can have multiple vials on hand for back-up because they are relatively cheap.
When an individual is experiencing an anaphalactiod reaction, there is usally plenty of time for them to prepare a standard injection. I train my patients and their family members to administer an intramuscualr injection, and give them a prescription for Epi vials and syringes. The advantage is that in addition to having an Epi-Pen that has a long shelf life, they can have multiple vials on hand for back-up because they are relatively cheap.
I was watching the national news on one of the three major networks tonight. They did a piece slamming Mylan and it's price increase on the EpiPen. The CEO is the daughter of a Senator and making major bucks on the price increase for this product alone.
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My pharmacy told me the alternative to the eppi pen was off the market. Can someone provide any links to the alternative?
http://www.goodrx.com/epinephrine?drug-name=epinephrine
I am hearing rumblings on the inter webs that this may no longer be available.
I am hearing rumblings on the inter webs that this may no longer be available.
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That would be good to know and pretty important to a lot of people. I hope someone can post a link. My understanding is that the delivery of such a life saving shot is really only a stop gap until one can be brought to the hospital. In other words the shot is good for about 15 minutes until the ambulance gets there. Scary stuff.
Mine goes with me everywhere!
My company stocks both of those products for pharmacies.
Most doctors write for Epi-Pen because they have been doing so for so long that they don't know that there may be an option. Depending the me laws of your state(s) a pharmacist may be able to fill an Epi-Pen script with Andrenaclick. If they can't either the pharmacy or you can call the doctor to see if he/she will change the script to something else.
Most doctors write for Epi-Pen because they have been doing so for so long that they don't know that there may be an option. Depending the me laws of your state(s) a pharmacist may be able to fill an Epi-Pen script with Andrenaclick. If they can't either the pharmacy or you can call the doctor to see if he/she will change the script to something else.
It does appear that Mylan and its leadership is getting overtly greedy. Though I suspect that the big jump in Mylan CEO salary was largely due to stock options; which in turn are due to increases in stock price which were directly due to increased revenue from Epi-Pens. My sympathy is that the average cost of creating a new prescription medicine is over 2.5 billion dollars which has to be funded somehow. Which is in part why there are so many TV advertisements for prescription drugs, since a small increase in demand can help cover those sunk costs, as the medicine itself usually costs little to manufacture.
Mylan blamed the cost increase in part on higher insurance co-pays which in a way is good, since the lack of consumer exposure to their healthcare costs has helped fuel the rapid increases in pricing. But Mylan does not garner any sympathy here since the drug sells for much less in other countries like Canada. Maybe this will help bring a wedge into the issue of medicine importation and better level pricing across the world; though that probably means that poor countries will be getting hurt by needing to pay more.
Mylan blamed the cost increase in part on higher insurance co-pays which in a way is good, since the lack of consumer exposure to their healthcare costs has helped fuel the rapid increases in pricing. But Mylan does not garner any sympathy here since the drug sells for much less in other countries like Canada. Maybe this will help bring a wedge into the issue of medicine importation and better level pricing across the world; though that probably means that poor countries will be getting hurt by needing to pay more.
What a fascinating conversation.
The US will continue to pay more for pharmaceuticals as long as we fail to reign in our incidence of frivolous litigation. Tort reform seems like a better way to go about dealing with this issue, not balance billing other countries in order to continue funding our lawyers.
I could not agree more. But the factoid below may explain why it has not happened.
41 percent of Congressman are lawyers.
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