It's happened before. - From Fortune
And it’s not alone: Valeant Pharmaceuticals vrx , which also became the target of price-gouging accusations last year, similarly responded by offering pharmacy coupon cards to patients, but has resisted calls to lower its drug prices.
And by keeping drug prices at their current levels, pharmaceutical companies also preserve their profit margins, while maintaining the flexibility to, yes, raise prices more moderately later on.
And it would almost certainly take longer for Mylan to negotiate a new arrangement—and by then the EpiPen controversy might have blown up further.
And the risk of losing money also falls less on Mylan than it does on those at the end of the supply chain, with the pharmacy having to dispense EpiPens while accepting less in copay money upfront, then applying for a rebate and waiting to see what trickles back.
And despite the fact that Mylan raised EpiPen prices roughly 30% in 2015 while prescription volume also grew 7%, the company’s revenue on the drug actually fell slightly, as the other players took even bigger cuts, according to Raffat.