EpiPen maker is being investigated by New York’s attorney general

The New York attorney general’s office is investigating whether Mylan Pharmaceuticals unfairly limited competition for its emergency allergy treatment EpiPen, which has been criticized for steep price increases.

A preliminary review showed that the company “may have inserted potentially anti-competitive terms” into sales contracts with many school systems, Atty. Gen. Eric Schneiderman said Tuesday. Subpoenas for company information were issued last week.

“If Mylan engaged in anti-competitive business practices, or violated antitrust laws with the intent and effect of limiting lower cost competition, we will hold them accountable,” Schneiderman said. “Allergy sufferers have enough concerns to worry about. The availability of lifesaving medical treatment should not be one of them.”

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EpiPens are used in emergencies to treat severe allergic reactions to insect bites and foods such as nuts that can lead to anaphylactic shock. They provide a single dose of the drug epinephrine and are auto-injectors, or spring-loaded syringes, that can be administered by patients themselves or by untrained people.

The price has grown to $608 for a two-pack, up more than 500% since 2007. The drugmaker has announced that it will launch a generic version that will cost $300 in the next several weeks.

Mylan, based in Canonsburg, Pa., said Tuesday that more than 700,000 free EpiPens have been distributed to more than 65,000 schools, and it has dropped a previous purchase restriction for schools that wanted more at discounts.

“The program continues to adhere to all applicable laws and regulations,” Mylan spokeswoman Nina Devlin said. “There are no purchase requirements for participation in the program, nor have there ever been to receive free EpiPen auto-injectors.”

Meanwhile, a New York legislator introduced a bill to authorize pharmacists to dispense little-known and cheaper generic epinephrine auto-injectors under a brand-specific prescription without having to get a new prescription from the doctor.

“Mylan has spent billions of dollars making EpiPen a household name synonymous with epinephrine, but there are lesser-known products such as generic Adrenaclick which can be purchased for approximately $140 for a two-pack,” said Senate Health Committee Chairman Kemp Hannon, a Long Island Republican.

He noted that the essential difference is that the Adrenaclicks injector — by Amedra Pharmaceuticals, based in Horsham, Pa. — has two caps instead of one.

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UPDATES:

2:50 p.m.: This article was updated with additional details.

This article was originally published at 10:55 a.m.