Outrageous CEO Got 671% Pay Raise While Hiking the Price of Epi-Pens
The CEO of the company that drastically increased the price of EpiPens got huge pay increases over the years, with her salary reaching nearly $19 million annually.
According to filings reported by NBC News, Mylan Pharmaceuticals CEO Heather Bresch's yearly compensation rose from $2,453,456 in 2007 to $18,931,068 last year.
The 671% raise for Bresch came after the company bought the rights to EpiPens, which are used to combat severe allergic reactions with an emergency injection of epinephrine.
In 2007, the Epi-Pen's wholesale price was $56.64, but it has now grown 460% to a whopping $317.82. The company's stock price more than tripled over that period.
Bresch is the daughter of Sen. Joe Manchin (D-WV) and some have called for congressional hearings after learning of her huge pay hikes amid the Epi-Pen price increases.
Congressional anger may be fueled by the company’s tactics in pushing legislation that helped boost the use of EpiPens.
Mylan spent about $4 million in 2012 and 2013 on lobbying for access to EpiPens generally and for legislation, including the 2013 School Access to Emergency Epinephrine Act, according to lobbying disclosure forms filed with the Office of the Clerk for the House of Representatives. Mylan also was the top corporate sponsor of a group called Food Allergy Research & Education that was the key lobbyist pushing for the bill encouraging schools to stock epinephrine auto-injectors, of which EpiPen is by far the leading product.
On FBN's Varney & Co. this morning, a mother whose young son suffers from peanut allergies spoke about the "outrageous" price increases.
Gina Cirrito said her son's life depends on having access to an Epi-Pen at all times.
A few years ago, she said it cost about $100 for a two-pack of Epi-Pens, but now she pays about $800. Cirrito said it's not recommended that users separate the pens, but due to the cost, she has to keep one at home and send one to school.
Doctors recommend having two Epi-Pens together just in case one doesn't work. Cirrito said that luckily she's never had to use one for her son.
Stuart Varney asked Cirrito what she would say to Bresch if she met her face-to-face.
Cirrito said she would want to emphasize to Bresch that there are people out there who cannot afford to pay the high prices and health insurance may not be an option for them.
"That'll be on their conscience with these little kids. ... Food allergies are life and death matters," she said.
Watch the interview above.