Drug Manufacturer Conducted Price Hike ‘Scheme’ to Gain Monopoly Over EpiPens, Class Action Alleges

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EpiPen Monopoly Class Action Lawsuit Overview: 

• Who: Landon Ipson filed a class action lawsuit against Viatris, Inc.
• Why: Plaintiff alleges the company devised an illegal scheme to monopolize the EpiPen market.
• Where: The class action lawsuit was filed in Utah federal court. 

Viatris, Inc., devised an illegal scheme to monopolize the market for epinephrine auto-injector devices, according to a new class action lawsuit. As a result, millions of Americans relying on this life-saving device have paid exorbitant prices for EpiPens.

Unlawfully exercising its monopoly power, Mylan, which later became Viatris, hiked the list price for two EpiPens to $608 in 2016, up from $100 in 2007 and an increase of over 600%. 

The price increase was not attributable to market conditions, increases in manufacturing costs or shortages in the supply of epinephrine, the lawsuit alleges, but rather the result of a multi-faceted, fraudulent scheme to obtain and maintain a monopoly in the market for epinephrine autoinjectors at the expense of American consumers and third-party payers.

To effectuate this scheme, the defendants combined and conspired to misclassify the EpiPen under Medicaid’s Medical Drug Rebate Program to save hundreds of millions of dollars in rebates; utilized their Medicaid savings to offer aggressive rebates and incentives to pharmacy benefit managers; used Mylan’s Access to Schools program to hook consumers on its product, meanwhile conditioning the provision of free EpiPens to schools on the exclusion of competitor products; and engaged in deceptive marketing programs to prevent competition.

The class action lawsuit also claims the company asserted and prosecuted invalid patents to dissuade competitors from entering the market for epinephrine autoinjectors; intervened in regulatory proceedings to delay competitors’ entry in the market; entered into unlawful pay-for-delay settlement agreements with competitors to maintain Mylan’s monopoly; convinced regulators and the public that a medical need justified Mylan’s decision to sell EpiPens solely in 2-paks, thereby exercising monopoly power to double consumer and third-party payor expenses; and falsely testified to Congress in an effort to avoid scrutiny and government action.

“It is time to put a stop to the defendants’ galling actions that have endangered the lives of millions of Americans, all while funneling hundreds of millions of dollars in illegal profits to defendants’ coffers,” the class action lawsuit states. 

“It is also time to send a message that the law will not tolerate the fraudulent and anticompetitive actions of America’s pharmaceutical giants. This case is of immense importance to the plaintiff, members of the Classes they seek to represent and the American public.”

Plaintiff Landon Ipson seeks to recover damages and overpayments from at least 2009 through the present, as well as injunctive relief under the federal antitrust laws and various state consumer protection and antitrust laws. He also seeks treble damages, attorneys’ fees, costs and punitive damages.

EpiPen Price Hike Places Children and Adults at Risk, Class Action Claims

Anaphylaxis is a severe life-threatening allergic reaction that can occur rapidly after exposure to an allergen. Epinephrine is very effective at treating anaphylaxis, but it must be administered immediately. A delay in receiving epinephrine of as little as 30 minutes can result in death. In the vast majority of cases, an epinephrine auto-injector is the most effective device for quickly administering epinephrine. It injects epinephrine into a muscle through the device’s spring-loaded needle. The EpiPen is the most prevalent epinephrine injection device with nearly 4 million prescriptions written last year alone. 

Ipson purchased approximately three EpiPen 2-Paks for his minor daughter, including since 2014 when the price for an EpiPen 2-Pak exceeded $400. EpiPen 2-Paks have cost him up to $700 out of pocket, after insurance.

However, Ipson alleges in the lawsuit that Mylan has exploited the demand for its product by engaging in unconscionable and anti-competitive conduct that has left thousands of children and adults exposed to a risk of death from a food allergy or bee sting, simply because they or their families cannot afford to pay the hundreds of dollars Mylan now charges for EpiPens. 

“Those families who can pay have each been overcharged by thousands. Those who cannot pay face a terrible lose-lose decision: (1) take their chances with an expired EpiPen; or (2) go without and pray that an ambulance arrives before they or their child die from anaphylactic shock,” the lawsuit states.

Are you an EpiPen consumer who has faced price increases? Let us know in the comments! 

The plaintiff is represented by Joseph W. Steele, Esq., of Siegfriend & Jensen and Cristina Delise, W. Mark Lanier and Rachel Lanier of The Lanier Law Firm. 

The EpiPen Monopoly Class Action Lawsuit is Ipson, et al. v. Viatris, et al., Case No. 2:21-cv-00643-BSJ, in the United States District Court For the District of Utah, Central Division.

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