Mylan N.V. and Mylan Specialty, the manufacturer of an automatic injector that delivers epinephrine to block severe allergic reactions known as EpiPen, are defendants in a putative class action suit filed recently that alleges the company violated consumer protection laws by increasing the price of EpiPen from $100 for a two-pack in 2007 to over $600 in 2016.
The Mylan class action seeks to certify a class of consumers who have purchased EpiPen since January 1, 2007. It was filed by plaintiff Lesley Huston in Kansas, who claims she was harmed by Mylan’s alleged price gouging.
The suit asserts that Mylan, which purchased EpiPen from the company that originally designed the product in 2007, has instituted at least 15 price increases in the past nine years, including a large increase after the only EpiPen competitor left the market in 2015. In addition, the complaint states that U.S. consumers have been forced to buy two EpiPens after Mylan stopped selling the single packs in the U.S. in 2010.
The suit argues that it costs Mylan only $20 to make a two-pack of EpiPens, and that its sale price of $600 is “far beyond what is reasonable or fair to consumers relying on the lifesaving device.” The plaintiff noted that Mylan’s recent introduction of a discount program in the U.S. that provides up to $300 toward the cost of a two-pack of EpiPens proves that Mylan recognizes the product is priced higher than it needs to be for the company to make a fair profit. In addition, not every consumer qualifies for the discount program.
In September, another EpiPen class action suit was filed alleging that Mylan’s pricing for the life-saving drug was “unconscionable” and violated Ohio consumer protection laws.
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