
To keep EpiPen sales up, Mylan threatened states, sued making bogus claims - kyleblarson
https://arstechnica.com/science/2017/04/mylan-bullied-sued-states-to-get-them-to-use-epipens-court-documents-show/
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packetized
Of note: the CEO of Mylan, Heather Bresch, is also the daughter of the senior
senator representing West Virginia, Joe Manchin, who was also the governor of
the state from 2005-2010. Joe's wife (and Heather's mother) Gayle Manchin took
over as the head of the National Association of State Boards of Education in
2012, and helped push through the 'EpiPen Law' in 2013 that gave funding
preference to schools that stocked them. [0]

Much like fish, the head tends to rot first.

0:
[https://www.usatoday.com/story/news/politics/2016/09/20/fami...](https://www.usatoday.com/story/news/politics/2016/09/20/family-
matters-epipens-had-help-getting-schools-manchin-bresch/90435218/)

~~~
paulsutter
It gets even better (Mylan is in my hometown), from Wikipedia [1]:

"In 2007..the Pittsburgh Post-Gazette reported that Bresch had claimed to have
an MBA degree from West Virginia University, but the university disputed that.
The university subsequently awarded her an EMBA despite her having completed
only 26 of the required 48 credits. Her father was governor of the state of
West Virginia at the time.

In the ensuing controversy, the university announced in April 2008 that it
would rescind Bresch's degree. Michael Garrison, WVU President at the time,
was reported to be "a family friend and former business associate of Bresch"
and a former consultant and lobbyist for Mylan. After a faculty vote of no
confidence, Garrison and several university officials subsequently resigned."

[1][https://en.m.wikipedia.org/wiki/Heather_Bresch](https://en.m.wikipedia.org/wiki/Heather_Bresch)

~~~
posguy
Sounds like a lot of home cookin' going on there, with the EpiPen being only
the crescendo of scandals caused by this group of family & friends.

It would be great if we could clean house and replace those acting in bad
faith.

~~~
vkou
What recourse will we have against them? Do any of the punishments for our
ruling class have teeth?

If you win, you become richer. If you lose, you... Lose your job at the state
capitol?

~~~
jacquesm
Worse still: if you lose other people's money you get bailed out (oh, and no
bonus for like 3 years or so).

~~~
rgbrenner
what? no.. you can't take away their bonuses. that would be unfair:
[http://www.nytimes.com/2009/03/15/business/15AIG.html](http://www.nytimes.com/2009/03/15/business/15AIG.html)

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theprop
Wow! Hospital supplies, prescription drugs and many other health care markets
are effectively un-enterable by new innovative entrants through similar kinds
of illegal, anti-competitive arrangements....probably one of the reasons we
haven't seen a YC hospital supply startup... '

"EpiPen’s sales and expanded markets brought in more than $1 billion in
revenue for Mylan." "The company’s CEO, Heather Bresch, is one of the highest-
paid CEOs in the industry, earning nearly $19 million annually."
"Mylan...had...illegal deals with schools to undercut competitors and
allegedly scammed federal and state regulators out of millions..."

~~~
pugio
Actually, a good friend of mine just filed for a patent on a widget which will
directly cut into Mylar's epipen sales. It's gonna be a tough startup, I'm
sure, but he's doing it.

~~~
brianwawok
So what, 6 years to get through the FDA?

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antisthenes
But the companies have to keep making abnormal profits, because the US
subsidizes R&D for the rest of the world!

~~~
NotSammyHagar
Their main r&d seems to be to stop others from getting approval for cheaper
competitors.

~~~
r00fus
No one said R&D needs to stay in product world. It's "business practice" R&D
that rakes in the big bucks!

~~~
imglorp
We are no strangers to this business^H^H^H^H^H^H^ legal plan.

[https://davidkellogg.files.wordpress.com/2015/12/oracle-
org-...](https://davidkellogg.files.wordpress.com/2015/12/oracle-org-
chart-300x195.png?w=500)

------
anigbrowl
Wow. There is noway such strategies are not sanctioned at the top level. It
would be interesting to see the CEO charged with malicious prosecution (which
is not limited to criminal justice proceedings but includes fraudulent tort
claims and suchlike).

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ChuckMcM
It seems that it would uncontroversial and acceptable to both sides of
Congress if they pursued creating a legal framework for making this sort of
activity both illegal and with meaningful punishment. We can ban people from
playing baseball for life, why not ban them from participating in the
healthcare community?

~~~
anigbrowl
I don't think so. Congress is full of corrupt people who would have too much
to lose from passing such a law.

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shmerl
Why does an adrenaline shot have to cost that much?

~~~
mirimir
Because most people don't know how to use hypodermic syringes. And because
either too little or too much might kill the patient.

~~~
shmerl
It doesn't explain or justify the price. It only explains the need for using
such devices.

~~~
mirimir
True, it doesn't account for Mylan's price. That mostly reflects
anticompetitive behavior. But even the least expensive versions cost much more
than multidose bottles and syringes.

