EpiPen Maker Price Gouges Before Monopoly Ends

Another quick follow up to the outrageous price hikes for EpiPens. It appears that Mylan, the company that makes EpiPens, settled a lawsuit in 2012 that would end its patent protection and allow a generic competitor in 2015. Mylan had already started to raise the price of the product before 2012, probably in anticipation of this settlement. And after the settlement, the price hikes increased in frequency. The company received even more good news when the generic was rejected by the FDA and its only other competitor had to be pulled from the market due to dosing problems, leaving Mylan with an absolute monopoly.

This has become pretty standard procedure with pharmaceutical companies whose products' patent protection is ending - massive price hikes in the last few years of monopoly power before a generic competitor arrives. I think everyone agrees that these firms should be give an opportunity to recoup the expenses of drug development. But having that monopoly power does not entitle a company to price-gouge. That is why regulating these monopolies is so important. Too bad our government can't be bothered to do it.