mylan under fire. i'm tyler matheson. it is the story that everyone is talking about, and no wonder. whether you've never heard of an epipen or never owned a share of mylan stock and never will, you've got a stake in this story, and that is because it goes directly to how life-saving drugs get to market in america and whether the fda and congress are doing enough to make sure they do. and fast. it speaks to the byzantine ways drug prices are set in this country. a process that involves manufacturers, insurers, and an almost unbelievably complex marketplace. it touches on complex and policy from the role of obamacare to the candidates on the. ca campaign trail. at the heart of it, a medicine who has gone to more than $600 a dose in less than ten years, and a ceo whose compensation has risen reportedly 671% in that time to $18 million. that ceo, heather braesh, was exclusively on cnbc today. how did she do? do her critiques of middle men and politicians stand up? all that and more today on a special edition of "power lunch.

mylan has a near monopoly in the u.s. and the company has seen its profits from the epipen alone skyrocket to $1 billion a year. meanwhile, mylan ceo heather bresch's total compensation has spiked from around $2.5 million in 2007 to almost $19 million today. bresch is the daughter of joe manchin of west virginia. last week, bresch appeared on cnbc and said her compmpany was committed to making ththe epipen accessibible to everyone. >> is a mother, i can assure you the last thing we would ever want is no one to have the epipen due to price. so, like i said, our response has been to take that immediate action of making sure that everyone has an epipen. so that was first in front and that is why we're here today, to make sure that that messages out there loud and clear and that no one is falling through the cracks. amy: mylan's decision to exponentially increase the cost of the epipen has ignited a firestorm on both social media and capitol hill. on monday, the house committee on oversight and government reform sent a letter

mylan and teva had a an agreement correct. mylan paid teva. >> $400 million. what was the number? >> the terms of the agreement were not public. >> it was a large number and that's one of the issues. >> to say essentially we will continue making epipen for x number of years and we won't challenge you but give us this time in which to make it exclusively and now they're out with another petition to try and keep it off. >> while they agreed the mechanical yi that teva could launch this generic in 2015 they were lobbying the fda not to approve the generic. >> it stinks. >> i want to go back david. so we just outlined it like that. how do you think this is going to be interpreted by that senate committee when they finally get in touch with heather brush. >> maybe there are a dozen of things that come out of that conversation? we're all for access but only access for our product because the petition shows we want to be the only one here. second, let's talk about not just pricing and profitability, but what's going on with the interaction with the fda? how close is industry? maybe if th

mylan is not an outlier.re than half of the drugs over the last year have 10% year over year price spikes. both on patent and off patent products. we do need much faster competition. although the big problem with competition is not regulatory barriers. the big problem are patent or other monopoly barriers that the drug companies have won through this congress. >> but not in this case. >> no, not in this case. this is an unusual circumstance. and they do have an effective monopoly which they've built up in part through a lot of work on developing the brand. but as a monopolist they have some duty, just moral obligation with a life saving product, to keep their product reasonably priced. >> are you saying, robert -- by the way, they have about an 85% market share. aviq pulled off the market and there are some other minor players out there. would you suggest the ftc get involved, robert? >> it's not clear if there's really an ftc violation on this. i mean, the first thing mylan has to exert some kind of self-con

mylan doesn't provide the this information and to be clear, mylan is not a bio tech company. this is a generics story and this is a bipartisan issue. so, try not to put this on the whole sector. >> i love valuation, fundamentals, that's what i like to use as the tools to figure out what to do, but here, i think the environment for just a political environment is so bad and will be for at least until the election. that i don't know, maybe by going right into the election, but from here, this is a great cause for her. it plays well. i think she's going to do it again and again. >> because it's not a bio tech company. maybe this is worse, there's price gouging at that level on the generics level. >> i'm not here to be a voice on whether this is good or bad, but people who say this is going to go to specialty pharma, it won't. this is something these -- >> it's one of the top holdings. the actually or the weights. >> let's go back one year. when the bio tech in general was at a high. there was a couple of pillars, obviously a pretty decent environment until hillary and some of th

i'll wait until i get the answer from mylan. at that point if that answer isn't legitimate and the prices don't go down, we'll talk about having a hearing. >> the focus on the middle man is pressuring shares of pharmacy benefit managers like express scripts and cvs heal is it the incentivized higher drug prescription prices as the mylan ceo says, and what role do they play in the health care system? meg tirrell is here with that part of the story. meg, let's start by explaining what these middle men are. how did they come to be, and why do they occupy such an important spot in the chain of distribution? wha come out today is just the murkiness, kind of the supply chain in the drug industry and pharmacy benefits managers play a role in this so essentially what their role is to negotiate drug prize on behalf of insurers and employers, so they get a lot of covered patients so express scripts being the biggest one has 80 million covered lives on its biggest plan and then they use that leverage to go to drug companies and say, okay,

mylan. no, that's not a name. mylan pharmaceutical under fire for raising the price of epipen more than 400% since 2007. references the lead editorial in the wall street journey. i finally read it. first i saw they were going to blame the government and regulators. i said, i'm interested in this. let me see how with can do this. the point their making you let a company get a complete mow notary publicly on something, and you don't greece for generic competition and what do you expect when one company controls a billion dollar market. what do you expect to happen? >> suddenly you're supposed to say i'm not going to maximize profits. there might be something to it. >> it's a point that's being heavily debated now. this artificial mow notary publicly created. didn't get through the fda. the competitor from sanfy had problems and pulled it from the market last year. there is another version on the market called adren click. however, they were having supply issues as of the last quarter and it's not the exact same thin

mylan mentions it 20 times.'m not sure that this is about the epi-pen and they have other problems as well including their deal with anthem. >> too early to go fishing in this area? this is an area that you know. >> right. >> it's complicated and much easier to point finger at the pharmaceutical companies as opposed to pharmacy benefit managers. >> i like cvs as a company and can't own it anymore because i don't know. we were talking about this anymore. we don't know where all the money gets paid and where the rebates go and i suspect it might be there as well. how could it not be? >> thank you, mike, for that. for more "options action" check out the full show tomorrow at 5:30 eastern time. could apple next creation send snapchat scrambling? julia boorstin joins us with all the details. julia? >> reporter: apple is reportedly developing a video-sharing and editing app which would allow user to record video and apply filters and drawings and send video to contacts like snapchat or other social media like twitter.

today a generic competitor emerged, but it's made by mylan itself.he company announced it's introducing a so-called authorized generic version of the epipen. it's an identical product at half the price. it's not unusual for drug companies to introduce their own generics when they anticipate competition to a brand name drug. but what's unique in this situation is that there is no generic competitor. israelly drug maker testifia was rejected earlier this year. analysts say this move may have been driven more by political pressure on mylan than financial decisions. the company's initial response last week offering co-pay assistance to patients but not lowering the price didn't satisfy critics. investors of mylan hope this step may take some of the pressure off the company by lowering costs for consumers. >> i think this is a clever move in the part of mylan but it is a move that's going to provide a lot of assistance to some consumers, particularly those paying the full list price to those underinsured. >> reporter: but the impact of the move isn't yet

pharma provides services, completely unaffiliated entity to mylan and mylan has no ownership stake in the company. you can go to the website to see it works with other companies as well. >> i think you've pointed this out, meg, but we have to remember mylan has a partner on this, pfizer. this is not just a mylan product. so pfizer is also involved. they're the biggest company -- pharmaceutical company in the world. the question now is also as another wall street research firm put out, if because this price cut is mylan going to have to look to cut some costs internally if they make less revenue now. but that's a pure stock story on mylan. but we're cnbc. >> exactly. what are you going to see in the guidance. >> if generic comes out isn't there potential possibility they could make more on the generic based on the way they get around distribution models? >> this is a fascinatinining question. we have a lot posted on cnbc.com. if we remember the economics of the supply chain that mylan actually gave us last week. they said they netted about $274 out of $608 list price for the branded ep

mylan needs to cut the price. ashley: so the attempts they made so far, attemptedo tart with a $300 savings card and reduce the cost to $300 for some customers. you say it's still too high? >> it's a convoluted mechanism. they're trying to preserve the premium market to continue to sell $600 epipens and capture the generics market and look a little better, but $100 is more than a profitable price for the product. it's strange to have a generics firm make a generic of its own product in the first place. mylan is aggressive in selling as many epipens as possible, they're not contributing to the r&d, but scary thing for families not to have the device stocked and needs to be affordable so families don't have to make tough decisions between paying monthly bills and making sure they have security against their children's allergic reaction. ashley: mylan, somewhere blaming obamacare and the middle costs in the process. we make the product, but by the time it passes through the individuals, the consumer, the pharmacy, th

and it's hard to be in mylan's camp.anies right now that are getting a lot of scrutiny. i don't think that scrutiny goes away. but if i look at mylan in totality it's really a generic drug company. >> all right. tim, we got to leave it there, we're out of time. thanks so much for joining us. we appreciate it. tim chaing of btig and thanks to our biotech pharma reporter meg tirrell. >>> all right, beyond the impact of the stock price, let's look at the impact on families, parents, children who need these products to guard against an attack. let's bring in kate kelly and sue herera, both with family members who have food allergies, basically. you have your epipen there. >> i have my epipens. i'm never without them. >> what do you pay out of pocket for these? >> i just got the three -- all three of my children have food allergies, daniel has multiple food allergies. he's egg, milk, all dairy, all nuts, sesame, my girls are just nuts. so i have to have -- >> that's not a comment on their personalities. >> no, it's not a comm

let us take a look at mylan stock. when i got to work it was down 8% by 8% by getting hit by more than 4.5% yesterday. suddenly a tank and is now down five and three quarters%. the stock has gotten hammered over the past couple of days. we can only argue that it started to really drop in price today because hillary clinton mentioned it. she's gotten involved in this controversy. at the pens -- epipen has jumped to as much a $700 for a single payer today. this of course is needed for anybody's suffering from death allergies. clinton releasing a statement saying its the latest element of drug companies raising prices without justifying the value behind them as this outrageous money gouging act comes to light. the company has also managed to quietly move its headquarters overseas to lower its tax bill. we have discovered and found it without you, but people didn't make the connection that mylan purchased in 2014 for $5 billion. it would've enabled them to do was move headquarters to the netherlands, but it still maintaine

not because what i'm against what mylan is doing. i disagree on the grounds that there is no free market in this. the government is mucking things up. per john's point there are competitors to this, abiq i don't think i'm pronouncing that right, they had a product recalled by the fda. teva had a product out there that was blocked by the fda. it's not the epinephrine that's expensive. that's like aspirin. it's the injection device. the fda is getting there and mucking up. people think why don't we have low health care prices? why? because we have the government involved. there's no free market in this area or there was a free market in health care, you better believe that the costs of the epipen would be a few dollars. but there isn't. this is the government's fault, not mylan's fault. >> i love people in politics who won't say the government is the solution to a problem essentially created by the government. >> why not, right. >> no. >> it's the truth. >> no. i understand what you're saying and i think actually that pharma companies

but did mylan control the damage?the wake of outrage over 17 price hikes of the life-saving epipens which spiked from $57 in 2010 -- 2007, rather, to as much as $700 for a pair today, the company announcing it will offer a savings card type of coupon to some patients that will cover up to $300 of the epipen two-pack price tag. to be clear, the company is not lowering the price by a single dollar. mylan's ceo today blaming the system, blaming insurance companies and the affordable care act for the price hike. she's reportedly said she'd a mom, and she's frustrated. the bad press pile-on continues. actor sarah jessica parker whose son suffers from a peanut allergy has resigned saying, quote: i recently learned that the price of the epipen has been systematically raised by mylan to a point that renders it cost prohibitive to many people. >> she doesn't condone the decision, she's ended her relationship with mylan as a direct result of it. before sarah jessica parker resigned, my next guest, a mylan spokeswoman, quit her

this isn't a mylan issue. this is a healthcare issue. pharmaceutical, the irony is the system incentives higher prices." mylan also is doubling the eligibility for its patient assistance program, which will eliminate out-of-pocket costs for uninsured and under-insured patients. for the first time-- america's top doctor is reaching out to every physician in the united states.the u-s surgeon general is sending a letter to the doctors... warning them about the opioid epidemic.in it-- he asks for help to solve the urgent health crisis.from 1999 to 2014-- more than 165- thousand people in the u-s died from overdoses related to pain medications. some of the surviving victims of the orlando nightclub shooting... will not have to deal with the costs of the hospital care they received. they will not bill survivors for medical services.in june... omar mateen opened fire inside the club... killing 49-people.orlando regional says it will seek payment for it services from other resources... such as insurance plans and a victims fund set up by the cit

mylan has a monopoly.hen companies have a monopoly for that temporary part of time, we actually can't have the free market work. we can't pit competition against each other and she's capitalizing on this. we have seen this with market skhleri and a technique that they do and if she wants to lower the price, she could lower the price today. the other thing i'll tell you is that the co-pay assistance cards she rolled out today, this's great, the average co-pay of express script patients over 18 months gone from $73.03 to $73.50. it is only gone up less than 50 cents even though she's taken the drug up by over 50%. and so, we're really trying to protect our patients, trying to protect our plans and she could roll back the prices today. >> dr. miller, you said that this particular product happens to be a monopoly position right now and you say roughly equivalent alternative. does express scripts have a role, do you try to take a role to nudge plans potential alternatives or essentially just follow what the pre

the drugmaker says it will allow people to buy the autoinjector directly from mylan but to be clear mylan is not lowering the price of the epipen by a single dollar. the press pile on continues, sarah jessica parker whose son suffers from a peanut allergy has resigned from her position as spokesman saying, quote, i heard the price of the epipen has been systematically raised to the point that renders the medication cost prohibitive for countless people. i'm disappointed, saddened and completely concerned by mylan's actions, i do not condone the decision. i have ended my relationship with mylan as a direct result of it. nicole: thank you. caught up on global market action we have been seeing overnight, in asia mixed bag, the nikkei is the big mover of the day down 1.1%, china, hong kong and hang seng up 1/2%, korea's kospi down one 12:45%. stocks have been trading choppy, look at this in europe, the ftse in london up a point, the cac in paris down 5, the dax in germany down 20. lauren: all market averages are down 1/2%. transport are lower. one group that gained this week are small caps. i

. >> mylan. >> mylan. >> mylan has a coupon. >> reporter: welcome to the brook, brody, and mommy. >> we have to sit quietly, okay? >> reporter: more patient woman... >> yes, you can have a popsical. >> reporter:... you will not find. >> this is normal, right? >> reporter: when she learned mylan wanted $1200 for the 2-2-packs her family needs, she found patience running out. >> just a house payment. >> reporter: a house payment for a drug discovered when william >> shocking. something i wasn't expecting. >> reporter: many weren't suspecting. but maybe we should have suspected something. 2007, mylan bought the rights to the epipen, $100 for a 2-pack. shortly after mylan became active in lobbying politicians, a quarter of a million dollar annual federal budget ballooned to a million plus. congress listened. 2013 the school access to emergency epinephrine act, well-liked law that so happened to benefit myland. >> of course it did. >> reporter: bud teaches at the daniels college of business at du. >> if you look at it strictly from a brand awareness, and marketing standpoint, it was brill

mylan should at least cut of $100."in fact, mylan's new generic version will still be far more expensive than a typical generic produced by a competitor - usually 90% cheaper.cnbc's meg terrell says mylan is essentially just changing the label.(sot-cnbc 13:44:09)"it is an identical product and they're calling it an authorized generic." (cut/edit 13:44:19) "in this case, mylan still has the whole market of the generic and the whole market of the branded!"last week, ceo heather bresche told cnbc the millions of dollars on product development:(sot-cnbc aircheck) bresche: "you need the exact right amount of epinephrine in seconds. and that's what our auto injector does. safely and it needs to work every time." but the drug itself, epinephrine, has been around for 100 years and costs just $3. analysts say the plastic auto injector is also cheap. epipens earn the company more than $1-billion a year. in may, bresche told wall street analysts:"...i think you'll see opportunit continue to have that price per pen that was tom cos

what mylan needs is competition, obviously.y which is why it took advantage of all the children with the severe allergens and it needs competition, generic competition, that's easy in terms of the instructions to the parents, for example, and it needs nongeneric competition. until then, it's got to be regulated as an essential facili facility. >> that's a good insight on the story that a lot of people are paying attention to. mr. nader, thanks again. good to talk to you again. >> thank you, carl. thanks cnbc. >> ralph nader joining us on the mylan case. by the way today on cnbc senator charles grassley who has publicly called for mylan to explain its pricing policies will give his take to power lunch 2:30 eastern time. >> when we come back in the next hour, uber reportedly losing over a billion dollars in the first half of this year alone. business insiders henry blodget will look at where the company stands ahead of a potential ipo. another check on the markets. some weakness for the dow down 9 points and the s&p, the nasdaq s

i'm going to gets the answer from mylan. if that answer isn't legitimate and the prices don't go down, we'll talk about having a hearing. we could get into that as well at the same time. i'm going to make that decision after september the 6th. >> all parties seem to agree that increased competition would help bring drug prices down. however, that's continued to be a hindrance here in the epipen case. nonetheless, the drug price battle appears only to be heating up. meg torl, cnbc business news. >> speaking to cnbc, heather bresch wants to fix what she says is a broken system. >> congress and the leaders of this country need to quit putting their toe in this topic and really fix the system. we have an outdated inefficient system. you know what's happening, the patient is paying twice. they're paying full retail price at the counter and they're paying higher premiums on the insurance. it was never intended that the patients would be paying this price. never. the system wasn't built for that. >> joining us now is nbc news traci

mylan thinks they could sell it for $1,000 a syringe. with, now with the news reports they probably won't. >> the "cbs overnight news" will be right back. question, and be honest... the what? ... tissue test! hold this up to your teeth... ...ugh yellow... i don't get it. i use whitening toothpaste. what do you use? crest whitestrips you should try them! whitening toothpaste only works on the surface. but crest whitestrips safely work below the enamel surface ... to whiten 25x better than a leading whitening toothpaste you used the whitestrips i passed the tissue test. oh yeah. would you pass the tissue test? see for yourself with the whitestrips. they are the way to whiten. oh, dishwasher, why don't you dry my dishes? nish? jet-dry? in the rinse aid compartment. it's there for a reason. it dries much better than detergent alone. sorry dishwasher. finish? jet-dry?. from the first moment you met it was love at first touch and all you wanted to do was surround them in comfort and protection that's why only pampers swaddlers premium protecti

ashley: did marketing of mylaner. >> it?o that, it is difficult, use ours, ours is simple? >> they have done effective job of branding. what our whole company stands for that making sure people know what their options are, not just hey i saw the commercial, i saw this in the doctor's office. i know there is another product i can use and it can save me hundreds of dollars. ashley: that alternative is safe and save lives. >> i use it for my kid. ashley: you ice it. so there is alternative. >> there is alternative. ashley: and lot cheaper? >> a lot cheaper. ashley: michael ray, thanks for being here. >> thanks for having me. ashley: market is down 37 points. the market closes in just about a little over six minutes from now. the nasdaq, the only major u.s. index in the green right now. by the way we'll have an update on st. jude and your road map for playing fed chair janet yellen's rate hike and all the hints she tries to give. stay with us at "countdown." better buckle up. that inactive satellite radio of yours is ready to ro

here's what he told cbs about mylan's major price hike of epi pens. >> mylan is a good guy. finally starting to make a little money and everyone is going crazy over it. >> former medtronic ceo bill george has a solution to the price hike problem. he will join us when "squawk on the street" comes right back. sym for whenever anything happens in the market. but thinkorswim already lets you create custom alerts for all the things that are important to you. i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade. farm fresh ingredients, step-by-step recipes, delivered to your door for less than $9 a meal. get $30 off your first delivery blueapron.com/cook. your business needs better technologywho wants to buy tha to drive better performance. so you need it to be reliable and fast. really fast. introducing the comcast business summer savings event. fast internet speed to drive performance, plus cutting edge wifi for your employees and customers, and voice mobility so your calls find you wherever you are. get some of our most advanced products at

we did reach out to mylan. they called it a flawed angelsy, focusing on a small number of products out of the more than 1400 protects they sell globally and 600 they sale in north america, self-serving and misleading to investors. they say this is especially true when theese products represent small percentage of mylan's $4 billion north american generic business. they say it hasn't been premised on hikes. when you see this criticism, people worrying their entire model is is premised on buying drugs and raising their prices. >> it's interesting, some of the wall street reports. they said it wouldn't affect earnings if they had to roll back the hike, but it could put a path of multiples. are you getting the sense that wall street is either ignoring or discounting the sentiment impact this could have on a drug? >> i think they embrace the sentiment impact here is strong, but what i do kind of see like the highs is that this will impact all of mylan's business model. analysts say this is a bigger company, they're

mylan agreed to lower the out of price pocket to patients.iz, you have done some amazing reporting, you have been in front of the story all week. elizabeth: after being in a hot seat mylan said we'll offer a $300 savings card and double the income level for which families are eligible for this savings card. it was just about at the poverty level. people are not satisfied. the mylan ceo is trying to deflect the focus to the insurance companies. can you blame it insurance companies for mylan hiking the price 1 times since they bought the epipen? charlie: this is a government problem. there is a guy high pressure vented the chair. right? there are many other chairs out there that were innovated after the chair. you have to ask yourself why a pretty simple technology is not being innovated and competition is not driving down the price. mylan can do what it did only because the government refuses to open up this thing to competition. i blame the obama administration and the fda even more than mylan for making this product prohibitively expensive f

mylan ... has violated anti-trust laws. sen. amy klobuchar d-mn "to do that to a parent to tell them, well yeah that costs $100 5 years ago but now it costs $600, that just can't happen in this country." vinita nair, cbs news: in a previous statement ... mylan said the epi- pen's price "has changed over time to better reflect important product features and the value the product provides" ... adding "we've made a significant investment to support the device." vinita nair, cbs news: , new york ((kirsten joyce)) and has been indicted in an unrelated securities fraud case. mylan offers coupons which allow many families to pay little or nothing for the epi-pen. but families with no insurance or high deductibles are still paying hundreds of dollars. as the epi-pen's price has risen ... the mylan's c-e-o's total compensation is up more than 600- percent over the past decade./// ((kirsten joyce)) >>> still lagging behind. the latest report on the college-readiness of nevada's high school student.. drier? your full forecast is still ahea

look at this mylan thing. people are immune.rs are more immune to the whole concern headline risk if you will. i understand that you know it did take at momentum out of the sector today but in general i mean on the desk we've seen much more buying the dip mentality or past several weeks than sell the rallies dh we have seen the past year. so it's been over a year, year and a half since hillary clinton made that tweet on drug pricing that essentially detailed a lot of the sector. i say, they are getting more immune. they understand. they have their head around it. i do believe they understand the aspects of what, the kind of control she will have if she is elect fed raising drug prices when you see something like mylan raising it this aggressively yeah it will raise the red flag and scare people. scare investors to the point where buyers maybe back off to see where the cards may fall. >> and we see the sector, by the way, brings up what best buy cited as one source of strength-tsh. >> and go pro. >> right. interesting names that

today mylan pharmaceutical says the generic two back will cost half that, $300. but consumer advocates say it's too little, too late. >> mylan should cut down to the 2007 level of $100. >> reporter: in fact mylan's new generic version will still be more than a typical generic by a competitor. meg terrell says that mylan is just changing the label. >> it is an identical product, and they're calling it an authorized generic. mylan still has the whole market of the generic and the whole >> reporter: last week the ceo told cnbc the company has spent millions of dollars on product development. >> you need the right amount of epinephrine injected in seconds. and that's what our auto injector does. safely and it needs to work every time. >> reporter: but the drug itself epinephrine has been around for 100 years and costs only $3. analysts say the plastic auto injector is also cheap. epipen has earned the company more than a billion dollars a year. in may, a statement i think you'll see opportunities for us concern among consumer advocates that parents may stick with the

mylan is up. at teva trying to get the generic epipen approved. >> who gets the branded version when they go to the pharmacy? >> it's a great question. i don't know. do you have to say i want the branded epipen to the pharmacist so they write, do not swap, it's made by the same manufacturer and the same product. it's a very interesting, confusing situation. >> the whole quagmire of the way drugs are biosimilar, biological agents, how they get protection, every country is different. you've got 12 years and extended release. it's not a free market. that's the problem. it's not where competition -- it can't be because of the cost to develop these things are so prohibitive that nothing would be develop if you didn't have patent protection. it's a mess. will you stick around, meg? >> sure. >> we'll solve it right here. let's talk more about the role the fda should or should not play in pricing. joining us former principle deputy commissioner with fda, currently associate dean johns hopkins bloomberg sc

and now the latest mylan.t's interesting, because the epipen price increases have been going on for a long period of time, something that crossed my radar some time ago in part when they were trying to buy teva and then when they were trying to -- or excuse me, right, and then when teva was trying to buy them and perrigo they were trying to buy perrigo came up a number of times and also in patent challenges out there, kyle bass, hedge fund manager i know well, had a fund put together to challenge patents. why now? you know, the price is up enormously, but why now as opposed to six months ago a year ago, two years ago? they've been raising this price for years. >> i think a lot of what happened is when you raise prices for drugs that are for children, it gets social media. one of the things that's changed is twitter. the notion of building a regime of people who are angry. it's more difficult when you have certain diseases that don't have vocal -- let's say they don't have vocal moms. this is like a vocal mom i

as the criticism grows, so does the pressure on mylan. shares fell 5% today and are down about 12% since friday me relationsh growth of epipen sales. >> the s the epipen only heightened today with washington ratcheting up the pressure. >> pharmaceutical companies that often try to portray themselves as if the inventor medication, often do real damage to by being greed di. and jacking up prices in a way that victimizes vulnerable americans. >> josh earnest said in response to a question about prices, that the white house isn't second guessing mylan, but that prescription drug price questions.an raise d hillary clinton weighed in, tweeting this epipens can be the difference between life and death. there's no justification in the prn 500% to more than $600 for a pack of two in the past decade. >> stirred up a hornet's nest. >> the three leaders commented, with bill georgios criticizing heather bresh for the increases, but it shouldn't end there. the senate ageing committee sent a leo mylan requesting informat preefing to staff in two weeks.

mylan down there more than 4%. he says in this price environment, increases of 400%, 500% could be beacons for scrutiny and what we have seen of course. we reached out to mylan and in june they responded to this report calling the analysis flawed and saying that they have more than 1,400 products they sell globally diversified business model there. but, kelly, certainly, the scrutiny is here today. >> yeah. you know, meg, i guess it's pretty hard when we hear about these different product price hikes to put it all in context of whether, in fact, this is generally the way the industry tries to attempt to get these price increases through. in other words, any big company's product fort portfolio would you find these price increases? >> maybe not the large price increases but you see continuity across the industry in terms of maybe multiple, single to low double digit price increases every year. that's pretty normal. even today we see an increase on two cancer drugs and not a thing to make a politician turn and say, w

will that push mylan to move? is another example of a company taking advantage of consumers. can you imagine, how many more things are there out there like this that don't get the attention? we know in media not everything gets the same type of attention as mylan is getting. it's disgusting and not baas i depend on my epipen because of my allergy and the allergy to bees. this is life-saving for people who can't afford it, and i just am concerned from the standpoint that we cannot just rely on the things that bubble up throw the media. >> scott martin, move showing the free market works. mylan stocks down 12% this week alone. the ceo said we're going to offer a coupon itch don't think the market liked it. the stock was flat and has gotten hammered. is that what you mean when you say let the free market work. we don't need washington to deal with is. >> the market said thank you very little to mylan and now found out at least patients have found out there's a generic out there that is available if you talk to your p

manchion, received $60,000 in campaign contributions from mylan will not comment. colleagues are calling for a congressional investigation. >> one of 50 americans including children are at risk for severe allergic reactions an epipen is designed to to stop. families have seen their out of pocket costs rise, by hundreds of dollars. so we thought might be interesting to hear from the man who knows about the business of raising drug prices. >> this particular drug is a necessity. >> important medicine should be expensive. they're valuable. >> former pharmaceutical chief,

i mean, mylan ultimately rarely actually gets $610 for the product.got to be -- >> they never get that. >> will never get that. if you have insurance, you're not going to pay that amount because the insurance company's getting rebated. this is only -- that price only falls down to somebody who doesn't have insurance and can't get a refund for whatever reason because they didn't bother to file the paperwork with mylan to get the rebate? >> that's right. very, very few people would actually pay the list price here. folks who maybe uninsured and walk in and pay the much higher sticker price. >> we look at insurers too. melissa, you can see behind you another big number which is the insurers. >> right. >> those are the ones we're closer to because we go to get drugs and somebody says you owe $150 out of pocket and you think, well, i have insurance. i'm sorry, mr., mrs. smith, your co-pay has gone up. if you look at the revenues, insurers, united health group right now $101 billion in 2011, $157 billion in revenue last year. aetna's revenues have doubled o