Following a blitz campaign by Congress, one which saw Hillary Clinton announce yesterday that the Epipen price increases were "outrageous", moments ago Mylan caved and announced it would take immediate action to cut the cost of its EpiPen allergy treatment. In a press release issued moments ago, Mylan said it would expand already existing programs to help people with high out-of-pocket expenses, effectively reducing costs by 50 percent for some patients while doubling the eligibility of its patient assistance program which will "eliminate out-of-pocket costs for uninsured and under-insured patients and families as well."

Yet even as it caved, Mylan could not resist taking a shot at Obamacare: "as the health insurance environment has evolved, driven by the implementation of the Affordable Care Act, patients and families enrolled in high deductible health insurance plans, who are uninsured, or who pay cash at the pharmacy, have faced higher costs for their medicine."

In any event, it appears that as of this moment, the threat of a congressional hearing crisis involving the company's CEO, and daughter of a senator, has passed, with the market cheering the announcement, pushing the stock higher by 4% in the premarket.

From the press release:

Mylan Taking Immediate Action to Further Enhance Access to EpiPen Auto-Injector



Mylan N.V. (NASDAQ, TASE: MYL) today announced it is taking immediate action to further enhance access to EpiPen® (epinephrine injection, USP) Auto-Injector by expanding already existing programs in recognition of those patients who are facing the burden of higher out-of-pocket costs. The company is reducing the patient cost of EpiPen® Auto-Injector through the use of a savings card which will cover up to $300 for their EpiPen 2-Pak®. For patients who were previously paying the full amount of the company's list price for EpiPen®, this effectively reduces their out-of-pocket cost exposure by 50%. Mylan also is doubling the eligibility for its patient assistance program, which will eliminate out-of-pocket costs for uninsured and under-insured patients and families as well.

Mylan CEO Heather Bresch said, "We have been a long-term, committed partner to the allergy community and are taking immediate action to help ensure that everyone who needs an EpiPen® Auto-Injector gets one. We recognize the significant burden on patients from continued, rising insurance premiums and being forced increasingly to pay the full list price for medicines at the pharmacy counter. Patients deserve increased price transparency and affordable care, particularly as the system shifts significant costs to them. However, price is only one part of the problem that we are addressing with today's actions. All involved must also take steps to help meaningfully address the U.S. healthcare crisis, and we are committed to do our part to drive change in collaboration with policymakers, payors, patients and healthcare professionals."

Mylan has worked to help patients with commercial insurance pay as little as $0 for EpiPen® Auto-Injector using the My EpiPen Savings Card®. In 2015, this resulted in nearly 80% of these patients paying nothing out of pocket for their EpiPen® Auto-Injector. However, as the health insurance environment has evolved, driven by the implementation of the Affordable Care Act, patients and families enrolled in high deductible health insurance plans, who are uninsured, or who pay cash at the pharmacy, have faced higher costs for their medicine.

Mylan is taking the following immediate actions to help further address the needs of patients and families:

For patients in health plans who face higher out-of-pocket costs, the company is providing immediate relief by offering a savings card for up to $300. This will effectively reduce by 50% the cost exposure for patients who would have otherwise paid the full list price for EpiPen® Auto-Injector.

Mylan also is doubling eligibility for our patient assistance program to 400% of the federal poverty level. This means a family of four making up to $97,200 would pay nothing out of pocket for their EpiPen® Auto-Injector.

Further, Mylan will continue to offer the EpiPen4Schools® program. The program, launched in August 2012, has provided more than 700,000 free epinephrine auto-injectors and educational resources to more than 65,000 schools nationwide to help them be prepared for anaphylaxis events among students.

Mylan also is opening a pathway so that patients can order EpiPen® Auto-Injector directly from the company, thereby reducing the cost.

These programs will apply to EpiPen® and EpiPen Jr® (epinephrine injection, USP) Auto-Injectors.

In the interest of fostering greater price transparency in the healthcare system, Mylan is providing the entire economic story of the EpiPen® supply chain on our website.