Mylan coupled executive pay with high profit targets: 7 things to know

Mylan's regulatory filings show the EpiPen developer enacted an incentive plan more than two years ago to reward executives who reached bold profit targets, The Wall Street Journal reports.

Here are seven things to know.

1. Since the Amsterdam-based drugmaker began the incentive program in 2014, Mylan has doubled EpiPen's list price to $608 for a two-dose package. The price of EpiPens — which administer life-saving shots of epinephrine to stop allergic reactions — increased nearly 550 percent since 2007, according to the report. A number of drug industry watchers say rewards tied to hitting profit targets may have influenced the price hikes.

2. Mylan's board permitted more than 100 employees to receive a one-time award if they could more than double the company's adjusted per-share earnings over the course of five years, ending in 2018. When granted, Mylan's top five executives could have received an award worth as much as $82 million if EpiPen achieved at least 90 percent of its 2018 profit target.

3. Mylan's board approved shorter-term rewards linked to adjusted diluted earning targets as well. This year, the drugmaker's plan targeted a 16 percent increase in adjusted diluted earnings, while last year, executives generated a 21 percent growth in adjusted diluted earnings, maxing out bonuses despite lower net earnings.

4. When Mylan's EpiPen price hikes were first revealed, the drug was estimated to account for about 10 percent of the drugmaker's revenue and 20 percent of its operating income, according to The Wall Street Journal.

5. In a statement, Mylan refuted the claim that its economic performance hinged on one product, like EpiPen.

6. In 2007, Mylan CEO Heather Bresch earned about $2.5 million, and by 2015 her salary hit just under $19 million, marking a 671 percent increase, according to NBC News. During that same period, the wholesale price of EpiPens rose from $56.64 to $317.82, representing a 461 percent increase. 

7. In response to the EpiPen price hike controversy, Mylan introduced an identical generic product costing $300 for a two-pack, compared to more than $600 for the original product.

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