On July 15th Pfizer, the manufacturer for EpiPen, agreed to a proposed class action settlement for $345 million. The soaring price of the EpiPen has been the source of hot debate for the past few years, bringing a series of lawsuits and backlash with it. Pfizer manufactured the emergency allergy treatment for Mylan Pharmaceuticals. You can read about Mylan Pharmaceuticals’ woes here and a prior 2016 settlement by Mylan for $465 million in 2017 here.
A recent article from Reuters explained that consumers were forced to overpay for the EpiPen due to anti-competitive practices that enabled the pharmaceutical company and manufacturer to control the market. While the device's manufacturing cost was $30 until 2016, it sold on the market for $100. When the consumer medical device price increased to $600, public and government officials naturally took notice.
While many of the claims against Mylan ended up being dismissed by US District Judge Daniel Crabtree, the matter of antitrust claims regarding a delayed patent remain. The next question at hand is whether or not the company played a role in delaying a potential generic brand EpiPen.
Both Pfizer and Mylan deny any wrongdoing and assert that their actions were lawful.
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