Rx Savings' Rea on Mylan Under Scrutiny for EpiPen Price(Audio)

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to Taking Style with pin Box and Gablee. Hayes on Bloomberg Radio. My Land and epi pens. Well, epi pens are in the news because since two thousand and seven, the price of fipens has increased by four hundred percent. During that same time, the now chief executive of my Land, her salary has increased more than six hundred and seventy Here to tell us more is Michael Ray. He is the chief executive of our ex Savings Solutions and he is based in Overland Park, Kansas. Michael, thanks for being

with us. Tell us about EpiPens and why has the price increased so much? Yeah, well, Pim, it's always a pleasure to be with you. Um. You know, with the Eppen situation, UM, you've got a couple of things, market factors combined, and you've got the mergers of a couple of companies. You've got a really big marketing campaign that's driven um a bit of fear um in the market and essentially, at the end of the day, UM that that's increased the price. There's obviously been some price spikes,

but what EpiPen does is it. It's epineffern is the active ingredient. It actually helps relax the smooth muscle in the throat. And so what happens sometimes with kids with a beasting or a peanut allergy, um, they may have a reaction where their throat swallows up. The epanef worn will actually um stop that from happening and could be life saving, which is which is why it's such a dilemma for a lot of parents on whether or not

they spend the six hundred bucks on it. And Michael, you know, we have talked today about the CEO of Milan how to brush her Her father is Democratic Senator Joe Mansion. We've seen, um, some of these executives from other pharmaceutical companies get called into Congress um to actually talk about these price hikes, whether it's UH fame Martin Shakreli at the former leader of Touring Pharmaceuticals, or executives

from Valiant. But when I think about this, uh, this group of companies, this seems to be the one that has the most general consumer recognition. This is the EpiPen. You know, this is to your point, the one that you grab if your kid does have a beasting. Does this change the game at all for how a Congress is looking at these companies and whether we see some kind of congressional order and be for violin itself. Yeah,

that's a great question. I mean, I think when you look at touring and you compare it to mylin UM, with touring, you know, you've got a life or that situation with their drug as well, UM usually usually in some very sick HIV patients. In this case, now you're

dealing with children. UM, so you've got maybe even an even more emotional component UM for some folks M on that and so you know they really as a parent, you know, speaking as as a parent, UM, it's pretty difficult to say no, no matter what the cost is. But that said, there's economics involved in their supply and demand,

and there's a breaking point. And I think that we've seen, um, you know, seen a breaking point being reached, not just in um, the case of touring with the very big increase at one time, but also with that depen and the smaller percentage increases. But overall UM really really inflating you know, both their sales and net profits. You know,

you you you speak about supply and demand. Teva comes to mind because they have an up and difference shot UM, that is, you know, potentially being reviewed by the fd as a competitor. Does this push that process to you know, come through faster. Do we see some kind of speedy review from the f d A as mylens going through this kind of public right now? Yeah, I think you know, there's I'm look, I'm all for competition, and I think this really ties into your question about UM about bringing

executives to Washington. UM. I'm all for competition in the free market, but I'm not sure why Teva necessarily gets to jump the line UM in this case. Knowing that you know, there is an epineffron auto injector that is readily available. Most people don't know that. And so I think this is a case where you know, information is power. It's something that we UM really you know, push hard

on for our our health plan and sell funded clients. UM. And it's really about information in the hands of the of the person making the decision at the right time. In the case of bringing UM, you know, more of these executives to Washington, if there's going if there's actually a goal, I'm all for it if there's actually something

that's going to result, um. But if it's if it's just a parade um to kind of publicly parade them, I don't think it's gonna it's gonna solve the problem that we're all looking for at the end of the day. And I think that really it should be people with solutions be brought to Washington, because there are often times things that can be done and something that we're definitely

advocating for the market. Well, just to give the context here, Michael, EpiPens make up of my lands operating profits and the same device cells in France for eighty five dollars. Is there any real reason why something that's sold for well, I don't know, fifty dollars, sixty dollars several years ago. Is there anything in the EpiPen itself that has increased so dramatically to make it now cost more than five Yeah, to my knowledge. Now, I mean, I think it's effective marketing,

it's effective branding, um. And they've they've increased the demand for for the product. But from a you know, cost of components that go into the product, I'm not aware of any any shortage, any price bike or anything like that, all right, thanks very much, Michael Ray. He is the founder and the chief executive of our X Savings Solutions. They are based in Overland Park, Kansas. The shares of my Land are down about four percent today at forty

dollars sixty four cents. And as you mentioned at the very beginning, Alex the chief executive of my Land of Pharmaceuticals. UH the daughter of Democratic Senator Joe Mansion of West of Virginia, Heather Breash. She was president of my Land in two thousand seven she earned two point four million dollars and UH last year she made eighteen point nine million dollars. This is Bloomberg coming up on taking stock, will take stock of global foreign exchange markets. We'll find

out is the dollar over valued? And what will Janet Yellen, Chair of the Federal Reserve, what will her speech mean for dollars