Mylan 'Took The Sting' Out Of The EpiPen Controversy
Mylan NV (NASDAQ: MYL) has received overwhelming criticism, even inciting mention from Hillary Clinton, for increasing the price of its life-saving EpiPen product 400 percent while raising the Mylan CEO’s salary by 600 percent.
Company shares have begun to rebound Thursday, however, due to the CEO’s interview with CNBC this morning, positive analyst commentary and a recently announced coupon with savings potential of up to $300.
“We believe MYL’s actions today should help defuse the growing controversy around EpiPen pricing,” said Barclays' Douglas Tsao.
The analyst believes there will be little net impact to the stock's numbers due to pricing actions and patient assistance programs. Tsao expects Mylan will only realize “a portion of recent price increases as MYL expands patient assistance and educational efforts on top of existing and added managed care rebates”
Agreeing with Mylan CEO Heather Bresch Tsao saw Mylan’s price hike showcasing the problems with the healthcare sector. “For that reason, we think the industry-wide debate on drug pricing will continue and should not be dismissed,” said the analyst.
Clinton Foundation's Ties To Mylan
“Interestingly, we note on the same day that Hillary Clinton criticized MYL for its price increase on the Epipen, Clinton also highlighted the impact of the Clinton Foundation’s work to distribute affordable antiretrovirals for HIV/AIDS patients globally, which has been facilitated by Mylan’s efforts,” added Tsao.
At time of writing, Mylan NV traded at $43.55, up 0.93 percent on the day.
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Latest Ratings for MYL
|Oct 2016||Mizuho||Initiates Coverage On||Buy|
|Oct 2016||Raymond James||Upgrades||Market Perform||Strong Buy|
|Sep 2016||Leerink Swann||Maintains||Outperform|
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