Mylan Will Launch Generic Version of EpiPen at Half the Price

Amid sharp criticism of the whopping price increase of the life-saving EpiPen, Mylan announced on Monday that it would launch a generic alternative at a 50 percent discount of the list price.

The generic EpiPen will cost $300 per two-pack carton and will be identical to the branded medicine. The company says it will launch the product in "several weeks," pending completion of label revision.

Plans announced by the company last week to provide more financial help to customers and to expand the number of low-income patients eligible to receive company subsidies will remain in effect. As the New York Times notes, the steps did not do much to quell public outrage, as the overall cost to the health system would remain the same. The price of the EpiPen has increased 550 percent over eight years, and the list price for a pack of two is just over $600. The product is used to treat severe allergic reactions.

"We understand the deep frustration and concerns associated with the cost of EpiPen to the patient, and have always shared the public's desire to ensure that this important product be accessible to anyone who needs it. Our decision to launch a generic alternative to EpiPen is an extraordinary commercial response, which required the cooperation of our partner," Mylan CEO Heather Bresch said in a statement.

In her statment, Bresch said because of the complexity and opaqueness of today's branded pharmaceutical supply chain and the increased shifting of costs to patients as a result of high deductible health plans, the company determined that bypassing the brand system and offering an additional alternative was the best option.

Defending criticism on the rising prices, Bresch said in an interview with CNBC that this wasn't a Mylan issue or an EpiPen issue but rather a health care issue. "The irony is that the system incentivizes higher prices," she said.

Experts say Mylan has been able to raise its prices because of the lack of any real competition. The Wall Street Journal notes one of the company's most recent price increases came after the recall of a competitor, Auvi-Q. Teva Pharmaceuticals has planned to launch a generic version but doesn't expect a product before 2017.

Image Credit: Greg Friese via Flickr Creative Commons