New York state opens antitrust probe of Mylan's EpiPen

September 6, 2016

New York state has launched an antitrust probe into Mylan's sale of the EpiPen anti-allergy injector to local school systems, New York's attorney general announced Tuesday.

A preliminary review by the New York office concluded that Mylan may have inserted anticompetitive terms into EpiPen sales contracts with local school systems, said Attorney General Eric Schneiderman.

"No child's life should be put at risk because a parent, school, or healthcare provider cannot afford a simple, life-saving device because of a drug-maker's anti-competitive practices," Schneiderman said.

The probe comes as Mylan faces criticism from Democratic presidential candidate Hillary Clinton, among others, after instituting a five-fold increase in the price of the life-saving epinephrine injectors over a decade.

A Mylan spokeswoman said the drugmaker's "EpiPen4Schools" program has provided more than 700,000 free auto-injectors to more than 65,000 schools in the US and that the program "continues to adhere to all applicable laws and regulations."

The drugmaker previously offered to sell schools additional injectors beyond those provided for free under the program, but that "such restriction no longer remains," the Mylan spokeswoman said.

Since coming under fire for higher prices last month, Mylan has announced plans to offer a generic version of EpiPen and to expand patient assistance programs.

Democratic Senator Amy Klobuchar, whose daughter relies on EpiPen, has called on the Federal Trade Commission to launch an anti-trust investigation against the company, which has a near-monopoly in the market.

Mylan shares rose 0.8 percent to $40.29 in afternoon trade.

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