Moneymakers: How the EpiPen became a $1bn blockbuster and caused a political storm

Price gouging has become a hot topic for the pharmaceutical industry in America. The latest storm involves the EpiPen, a device that delivers a shot of adrenaline for patients suffering a life-threatening allergic reaction.

Price gouging has become a hot topic for the pharmaceutical industry in America. The latest storm involves the EpiPen, a device that delivers a shot of adrenaline for patients suffering a life-threatening allergic reaction. The EpiPen has been around since the late 1980s, but since drugmaker Mylan Pharmaceuticals acquired the rights to the device in 2007, it has cranked the price up to the point where many users say they can no longer afford them.

The EpiPen is packed with just a few dollars' worth of medicine, but the wholesale price of a two-pack of the device is more than $600, up from less than $100 in 2007, says The New York Times. By contrast, a two-pack sells for the equivalent of $85 in France, accordingto Bloomberg. This has meant healthy profits for Mylan. Annual EpiPen sales have risen fivefold since 2007 to $1bn. Margins were 55% in 2014, up from 9% in 2008, estimates researcher ABR Healthco.

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