EpiPen outrage: Silicon Valley engineers figure real cost to make lifesaving auto-injector two-pack about $8
Key Excerpts from Article on Website of The Mercury News (One of Silicon Valley's Leading Newspapers)
Posted: October 10th, 2016
In his 93 years, Bob Wallace has seen some product-pricing doozies over the decades, but the nonstop national furor over the stratospheric price hikes for EpiPens - now retailing above $700 for a two-pack - was the final shot. Wallace and Roland Krevitt, a veteran Scotts Valley manufacturing and tooling consultant, set out to demystify the cost to produce the EpiPen, piece by piece. The auto-injector delivers a lifesaving dose of adrenaline to treat serious allergic reactions to everything from bee stings to food. [They crunched] the costs for molding and manufacturing the nozzle, needle, syringe, springs, safety cap - and 0.3 mg of epinephrine. Their startling estimate of the cost for a two-pack of EpiPens: $8.02. And that even included the bright-yellow box. The pharmaceutical giant Mylan is the latest drugmaker to withstand a public lashing over skyrocketing drug prices. While politicians and patients demand explanations ... policy experts and drug makers blame an American health care system built on an ever-expanding pool of middlemen whose piece of the action is driving up the final bill. [Mylans] chief executive, Heather Bresch, recently told a congressional committee her company pays $69 per two-pack to the firm that actually manufactures the EpiPen, [and] pointed to charts explaining why the company charges a $608 wholesale price for a two-pack. The Wall Street Journal ... reported last week that Mylan low-balled its calculation of EpiPen profits to Congress.