Standard News

Hide Advertisement
  • Business
  • Culture
  • News
  • Technology
  • Trending
Site logo
ADVERTISEMENT
ADVERTISEMENT

Weak Mylan board fosters EpiPen ‘debacle’: New York comptroller

By Reuters 2 min read
Advertisement - Continue reading below
A file photo showing the EpiPen auto-injection epinephrine pens manufactured by Mylan NV pharmaceutical company are seen in Washington

By Ransdell Pierson

(Reuters) – New York City’s comptroller on Thursday criticized what he said are “exorbitant” price increases for Mylan NV’s <MYL.O> allergy auto-injector EpiPen and said weak board oversight of management decisions had undermined the company’s reputation and its stock price.

Advertisement

Scott Stringer said the price hikes, six times what the device cost when Mylan took it over in 2007, have prompted a public backlash and are partly responsible for a nearly 10 percent decline in Mylan’s share price in the past month alone. Stringer manages about $163 billion in pension funds for the city, including 1,059,357 shares of Mylan common stock worth about $45 million, he said.

“Mylan’s gross mismanagement of its EpiPen pricing strategy exacerbates the company’s protracted history of weak board oversight,” Stringer said in a letter to Douglas Leech, a Mylan board member who is chairman of its nominating and governance committee.

Mylan, whose tax address is in the Netherlands but with corporate headquarters in Canonsburg, Pennsylvania, has raised the U.S. price of EpiPen from less than $100 when it acquired the product to more than $600.

Amid an outcry by parents, consumer groups and U.S. politicians, the company on Monday said it will soon launch the first generic version of the device for $300, half the list price of its branded product. The EpiPen jabs a dose of the drug epinephrine into the thigh to counter dangerous allergic reactions such as to peanuts, food allergies and bee stings.

Stringer said Mylan has failed to establish independent board leadership and noted the U.S. Securities and Exchange Commission is investigating alleged land dealings between the company and its lead independent director, Rodney Piatt.

Mylan spokeswoman Nina Devlin, responding to Stringer’s criticisms, said board members, including 10 independent directors, are highly qualified and vigilant.

“The board has been actively engaged in overseeing the execution of Mylan’s growth strategy over the past decade – a strategy which has brought hundreds of products to the market,” Devlin said.

Leech and Piatt were not immediately available to comment.

Although Mylan Chief Executive Heather Bresch called the cheaper generic EpiPen an “extraordinary” commercial response, criticism has continued to rain down on the drugmaker. The U.S. House Committee on Oversight and Government Reform is investigating the company’s EpiPen pricing strategy.

(Reporting by Ransdell Pierson; Editing by Dan Grebler)

tagreuters.com2016binary_LYNXNPEC803LY-VIEWIMAGE

Advertisement - Continue reading below

Sandusky lawyer seeks to prove leak tainted in Penn State molestation case
News
Reuters 3 min read

Sandusky lawyer seeks to prove leak tainted in Penn State molestation case

Ohio jury recommends death penalty for man who killed three women
News
Reuters 2 min read

Ohio jury recommends death penalty for man who killed three women

Actor-director Krasinski mines tears, laughs in ‘The Hollars’
Entertainment
Reuters 2 min read

Actor-director Krasinski mines tears, laughs in ‘The Hollars’

Christie said to know of lane closures as ‘Bridgegate’ trial starts
News
Reuters 3 min read

Christie said to know of lane closures as ‘Bridgegate’ trial starts

Congressional leaders ask for more time to study new fuel rules
News
Reuters 2 min read

Congressional leaders ask for more time to study new fuel rules

Lady Gaga caught in bad romance with China after meeting Dalai Lama
Entertainment
Reuters 2 min read

Lady Gaga caught in bad romance with China after meeting Dalai Lama

Britain’s motor show ‘Top Gear’ returns with new line-up
Entertainment
Reuters 1 min read

Britain’s motor show ‘Top Gear’ returns with new line-up

Suicide rate of U.S. veterans rose one third since 2001: study
News
Reuters 2 min read

Suicide rate of U.S. veterans rose one third since 2001: study

Cinemark theater chain not liable in 2012 Colorado movie massacre
News
Reuters 2 min read

Cinemark theater chain not liable in 2012 Colorado movie massacre

Dylann Roof wrote white supremacist manifestos: prosecutors
News
Reuters 2 min read

Dylann Roof wrote white supremacist manifestos: prosecutors

load more Loading posts...

sidebar

ADVERTISEMENT
ADVERTISEMENT

sidebar-alt

  • About Us
  • Imprint
  • Contact Us
  • Terms of Service
  • Privacy Policy
  • For Advertisers