How Mylan could actually boost profits from its generic EpiPen

Mylan recently unveiled a $300 generic version of its EpiPen medication following controversy over the high price of the life-saving treatment. While consumers will pay less for the new unbranded EpiPen, Mylan could actually make more money from the generic version than the branded product, according to Business Insider.

The Canonsburg, Pa.-based drugmaker said it earns $274 off every EpiPen sold. The remaining $334 is split between pharmacy benefit managers, insurers, wholesalers and pharmacy retailers, according to Mylan.

Since generic drugs are easier to distribute directly to pharmacies, Mylan can cut out wholesalers and pharmacy benefit managers, escaping the charges associated with their involvement in the drug's supply chain.

This change would allow Mylan to rack in almost 10 percent more money for the generic version than the branded medication, according to the report.

Mylan declined to comment on Business Insider's report, but pointed to an analysis done by Susquehanna International Group that indicated the company would make a net price of $200 off the generic EpiPen, down from the $274 they make off of the branded product.

More articles on supply chain:

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Senators say Mylan's discount program, generic EpiPen only temporary solution
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