WEBVTT - Rx Savings' Rea on Mylan Under Scrutiny for EpiPen Price(Audio)

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<v Speaker 1>I'm Charlie Palleton. That's a Bloomberg business flash. You're listening

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<v Speaker 1>to Taking Style with pin Box and Gablee. Hayes on

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<v Speaker 1>Bloomberg Radio. My Land and epi pens. Well, epi pens

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<v Speaker 1>are in the news because since two thousand and seven,

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<v Speaker 1>the price of fipens has increased by four hundred percent.

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<v Speaker 1>During that same time, the now chief executive of my Land,

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<v Speaker 1>her salary has increased more than six hundred and seventy

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<v Speaker 1>Here to tell us more is Michael Ray. He is

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<v Speaker 1>the chief executive of our ex Savings Solutions and he

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<v Speaker 1>is based in Overland Park, Kansas. Michael, thanks for being

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<v Speaker 1>with us. Tell us about EpiPens and why has the

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<v Speaker 1>price increased so much? Yeah, well, Pim, it's always a

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<v Speaker 1>pleasure to be with you. Um. You know, with the

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<v Speaker 1>Eppen situation, UM, you've got a couple of things, market

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<v Speaker 1>factors combined, and you've got the mergers of a couple

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<v Speaker 1>of companies. You've got a really big marketing campaign that's

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<v Speaker 1>driven um a bit of fear um in the market

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<v Speaker 1>and essentially, at the end of the day, UM that

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<v Speaker 1>that's increased the price. There's obviously been some price spikes,

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<v Speaker 1>but what EpiPen does is it. It's epineffern is the

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<v Speaker 1>active ingredient. It actually helps relax the smooth muscle in

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<v Speaker 1>the throat. And so what happens sometimes with kids with

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<v Speaker 1>a beasting or a peanut allergy, um, they may have

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<v Speaker 1>a reaction where their throat swallows up. The epanef worn

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<v Speaker 1>will actually um stop that from happening and could be

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<v Speaker 1>life saving, which is which is why it's such a

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<v Speaker 1>dilemma for a lot of parents on whether or not

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<v Speaker 1>they spend the six hundred bucks on it. And Michael,

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<v Speaker 1>you know, we have talked today about the CEO of

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<v Speaker 1>Milan how to brush her Her father is Democratic Senator

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<v Speaker 1>Joe Mansion. We've seen, um, some of these executives from

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<v Speaker 1>other pharmaceutical companies get called into Congress um to actually

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<v Speaker 1>talk about these price hikes, whether it's UH fame Martin

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<v Speaker 1>Shakreli at the former leader of Touring Pharmaceuticals, or executives

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<v Speaker 1>from Valiant. But when I think about this, uh, this

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<v Speaker 1>group of companies, this seems to be the one that

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<v Speaker 1>has the most general consumer recognition. This is the EpiPen.

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<v Speaker 1>You know, this is to your point, the one that

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<v Speaker 1>you grab if your kid does have a beasting. Does

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<v Speaker 1>this change the game at all for how a Congress

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<v Speaker 1>is looking at these companies and whether we see some

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<v Speaker 1>kind of congressional order and be for violin itself. Yeah,

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<v Speaker 1>that's a great question. I mean, I think when you

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<v Speaker 1>look at touring and you compare it to mylin UM,

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<v Speaker 1>with touring, you know, you've got a life or that

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<v Speaker 1>situation with their drug as well, UM usually usually in

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<v Speaker 1>some very sick HIV patients. In this case, now you're

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<v Speaker 1>dealing with children. UM, so you've got maybe even an

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<v Speaker 1>even more emotional component UM for some folks M on

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<v Speaker 1>that and so you know they really as a parent,

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<v Speaker 1>you know, speaking as as a parent, UM, it's pretty

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<v Speaker 1>difficult to say no, no matter what the cost is.

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<v Speaker 1>But that said, there's economics involved in their supply and demand,

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<v Speaker 1>and there's a breaking point. And I think that we've seen, um,

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<v Speaker 1>you know, seen a breaking point being reached, not just

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<v Speaker 1>in um, the case of touring with the very big

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<v Speaker 1>increase at one time, but also with that depen and

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<v Speaker 1>the smaller percentage increases. But overall UM really really inflating

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<v Speaker 1>you know, both their sales and net profits. You know,

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<v Speaker 1>you you you speak about supply and demand. Teva comes

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<v Speaker 1>to mind because they have an up and difference shot UM,

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<v Speaker 1>that is, you know, potentially being reviewed by the fd

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<v Speaker 1>as a competitor. Does this push that process to you know,

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<v Speaker 1>come through faster. Do we see some kind of speedy

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<v Speaker 1>review from the f d A as mylens going through

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<v Speaker 1>this kind of public right now? Yeah, I think you know,

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<v Speaker 1>there's I'm look, I'm all for competition, and I think

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<v Speaker 1>this really ties into your question about UM about bringing

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<v Speaker 1>executives to Washington. UM. I'm all for competition in the

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<v Speaker 1>free market, but I'm not sure why Teva necessarily gets

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<v Speaker 1>to jump the line UM in this case. Knowing that

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<v Speaker 1>you know, there is an epineffron auto injector that is

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<v Speaker 1>readily available. Most people don't know that. And so I

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<v Speaker 1>think this is a case where you know, information is power.

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<v Speaker 1>It's something that we UM really you know, push hard

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<v Speaker 1>on for our our health plan and sell funded clients. UM.

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<v Speaker 1>And it's really about information in the hands of the

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<v Speaker 1>of the person making the decision at the right time.

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<v Speaker 1>In the case of bringing UM, you know, more of

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<v Speaker 1>these executives to Washington, if there's going if there's actually

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<v Speaker 1>a goal, I'm all for it if there's actually something

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<v Speaker 1>that's going to result, um. But if it's if it's

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<v Speaker 1>just a parade um to kind of publicly parade them,

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<v Speaker 1>I don't think it's gonna it's gonna solve the problem

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<v Speaker 1>that we're all looking for at the end of the day.

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<v Speaker 1>And I think that really it should be people with

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<v Speaker 1>solutions be brought to Washington, because there are often times

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<v Speaker 1>things that can be done and something that we're definitely

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<v Speaker 1>advocating for the market. Well, just to give the context here, Michael,

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<v Speaker 1>EpiPens make up of my lands operating profits and the

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<v Speaker 1>same device cells in France for eighty five dollars. Is

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<v Speaker 1>there any real reason why something that's sold for well,

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<v Speaker 1>I don't know, fifty dollars, sixty dollars several years ago.

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<v Speaker 1>Is there anything in the EpiPen itself that has increased

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<v Speaker 1>so dramatically to make it now cost more than five Yeah,

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<v Speaker 1>to my knowledge. Now, I mean, I think it's effective marketing,

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<v Speaker 1>it's effective branding, um. And they've they've increased the demand

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<v Speaker 1>for for the product. But from a you know, cost

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<v Speaker 1>of components that go into the product, I'm not aware

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<v Speaker 1>of any any shortage, any price bike or anything like that,

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<v Speaker 1>all right, thanks very much, Michael Ray. He is the

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<v Speaker 1>founder and the chief executive of our X Savings Solutions.

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<v Speaker 1>They are based in Overland Park, Kansas. The shares of

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<v Speaker 1>my Land are down about four percent today at forty

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<v Speaker 1>dollars sixty four cents. And as you mentioned at the

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<v Speaker 1>very beginning, Alex the chief executive of my Land of Pharmaceuticals.

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<v Speaker 1>UH the daughter of Democratic Senator Joe Mansion of West

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<v Speaker 1>of Virginia, Heather Breash. She was president of my Land

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<v Speaker 1>in two thousand seven she earned two point four million

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<v Speaker 1>dollars and UH last year she made eighteen point nine

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<v Speaker 1>million dollars. This is Bloomberg coming up on taking stock,

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<v Speaker 1>will take stock of global foreign exchange markets. We'll find

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<v Speaker 1>out is the dollar over valued? And what will Janet Yellen,

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<v Speaker 1>Chair of the Federal Reserve, what will her speech mean

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<v Speaker 1>for dollars