Pharma CEO Gives Herself $18M Raise Then JACKS Up Price For Life Saving Drugs (DETAILS)

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Pharmaceutical company Mylan, widely known for their life-saving allergy medication EpiPen, increased the price of the drug dramatically, and raised their executives’ compensation. Top company executives saw their total compensation jump by more than 600 percent.

EpiPen is an Auto‑Injector of the medicine, epinephrine. EpiPens are used in emergencies to prevent people, mainly children, who experience life-threatening and potentially deadly anaphylactic shock that comes with allergic reactions.

In 2007, Mylan raised EpiPen prices with the average wholesale price going from $56.64 to $317.82, a 461 percent increase. During the same time, from 2007 to 2015, Mylan CEO Heather Bresch’s total compensation went from 2.453,456 in 2007 to $18,931,068 in 2015, amounting to a 671 percent raise over eight years.

According to NBC, Bresch wasn’t the only one receiving a higher pay, Mylan’s president,  Rajiv Malik, saw his compensation increase by 11 percent to $1 million annually as of 2015, while Mylan Chief Commercial Officer, Anthony Mauro, got a 13.6 percent raise, amounting to $625,000 per year.

Mylan’s stock prices also increased over the same period as EpiPen’s rising cost. Just two years after Mylan acquired the EpiPen patent, the price increased by a 5 percent rate. In 2009, the price of the EpiPen increased by a massive 19 percent. During 2010, 2011, 2012, and 2013, the price went up by another ten percent per year. From the fourth quarter of 2013 to the second quarter of 2016, Mylan steadily raised EpiPen prices 15 percent every other quarter. Mylan’s stock price tripled, going from $13.29 per share in 2007 to $47.59 in 2016.

Mylan’s faulty business ethics won’t go unnoticed for long. Parents, and as well as politicians, are disparaging Mylan for the ridiculous price increase and demand justification for such a hike in prices.

On Monday, Senator Charles Grassley of Iowa, chairman of the Senate Judiciary Committee, sent a letter to Heather Bresch saying he was concerned that the substantial price increase could limit access to a much-needed medication. He requested additional information on the price increases.

In his letter, Grassley added 

‘I demand that Mylan take immediate action to lower the price of EpiPen’s for all Americans that rely on this product for their health and safety.’

Senator Amy Klobuchar of Minnesota has now called for a hearing to investigate “the enormous increase in the price of EpiPens.” The Senator said on Sunday that her daughter uses an EpiPen, and also sent a letter to the FTC requesting an investigation into Mylan’s business practices.

Klobuchar wrote.

‘Although the antitrust laws do not prohibit price gouging, regardless of how unseemly it may be, they do prohibit the use of unreasonable restraints of trade to facilitate or protect a price increase.’

As of Tuesday afternoon, Mylan has not responded to the request for a senate hearing, and Mylan CEO Heather Bresch haven’t even commented on it. A progressive action group has launched a petition urging Mylan to make the EpiPen affordable for everyone. Click here to sign this very important petition.

Featured image provided by: Getty Images