Australian parents are being reassured they are unlikely to face big price hikes for the EpiPen, a life-saving anti-allergy device, despite a controversial 400 per cent cost increase in the United States.

Key points: Epipen twin pack costs $38 in Australia

Epipen twin pack costs $38 in Australia The cost has remained stable in Australia since 1990s

The cost has remained stable in Australia since 1990s Pharmaceutical company Mylan has inflated cost of EpiPens in US by 400 per cent

Since the international pharmaceutical company Mylan purchased the product in 2007, it has slowly raised the price in the US from $50 to more than $300 per EpiPen.

In the last decade, Mylan has also made the product only available in twin packs, so American allergy sufferers have to pay up to $600 for the drug.

However, Australians are able to buy an EpiPen twin-pack for $38, under the Pharmaceutical Benefits Scheme.

Those who do not qualify can buy the drug privately over the counter for $100.

Allergy and Anaphylaxis Australia president Maria Said said the cost of an over-the-counter EpiPen had remained stable in Australia since the 1990s.

"Since 2003, every individual diagnosed with severe allergy and risk of anaphylaxis can purchase a maximum of two devices which are government subsidised at a cost of $38," she said.

"My hope is there won't be any price rise here.

"Schools, childcare centres, camp venues and employers are buying EpiPens over the counter at a cost of $100. And that's for a product with a shelf life of only around 12 months."

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With a jab to the thigh, the EpiPen injects the drug adrenaline, which counteracts the symptoms of a severe allergic reaction, including swelling and breathing difficulties.

More than 73,000 Australians are prescribed EpiPens.

Price hike causes controversy in United States

The gradual price rise of EpiPens went largely unnoticed in the US until this year when American health insurance companies started passing on the cost to consumers.

Now politicians, health advocates and parents say Mylan's greed is putting the lives of millions of Americans at risk.

The American Medical Association has urged Mylan to reduce the "skyrocketing" cost of EpiPens.

"With lives on the line, we urge the manufacturer to do all it can to rein in these exorbitant costs," AMA president Andrew Gurman said in a statement.

White House hopeful Hillary Clinton says the price increases are unjustified. ( Reuters: Lucas Jackson )

US presidential candidate Hillary Clinton has also described the price hike as "outrageous".

"It's wrong when drug companies put profits ahead of patients, raising prices without justifying the value behind them," she said.

However, the United States Government is ultimately powerless when it comes to the price of drugs.

The US is the only developed nation on Earth which allows pharmaceutical companies to set their own prices.

Mylan has blamed American health insurance companies for passing on the cost of EpiPens.

"An increasing number of people and families have enrolled in high-deductible health plans, and deductible amounts continue to rise, " the company said in a statement.

"This new change to the industry is not an easy challenge to address, but we recognise the need and are committed to working with customers and payers to find solutions to meet the needs of the patients and families we serve."