Senate Chairman calls Mylan's explanation of price hikes incomplete, insufficient

U.S. Senate Judiciary Chairman Chuck Grassley (R-Iowa) said Mylan's seven-page letter addressing the company's nearly 550 percent price hike for EpiPens — which administer life-saving shots of epinephrine to stop allergic reactions — lacked details on how it decided to raise the price of the devices, according to Bloomberg.

"I appreciate the information provided but it's an incomplete response and wouldn't satisfy my constituents who are upset about the EpiPen price increases," Senate Chairman Grassley said in a statement Friday of the Sept. 8 letter. "It doesn't provide the full picture that I requested, and it doesn't answer all of my questions."

Mylan declined to provide further responses on the matter, according to Bloomberg.

Senate Chairman Grassley said the pharmaceutical company was vague about how it decided to raise the price of the EpiPen and provided little detail on any product features or value that Mylan says validates the price increase, according to the report.

In the unsigned letter, Mylan said pricing for drugs is "a complex and difficult endeavor" and encompasses a variety of determinants, including market conditions, negotiated costs of goods from distributors and a company's goals for research and development and patient assistance.

The auto-injector device cost $57 a shot when Mylan purchased it in 2007. However, after a series of price hikes, a pair of EpiPens now costs more than $600.

Read the full report here.

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