Cigna Corporation (CI) Stops Covering EpiPen by Mylan NV (MYL)

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Cigna Corporation (NYSE:CI) will no longer be covering the expensive EpiPen made by Mylan NV (NASDAQ:MYL).

Cigna Corporation, EpiPen, Mylan NV, MYLCigna Corporation is switching its coverage to the generic version of the EpiPen that is also made by Mylan NV. It says that this version of the products is half the price of the name brand. The health insurance company also points out that it still uses the same formula as the more expensive version.

Mylan NV just introduced the generic version of its EpiPen in December. The company says that it was expecting health insurance companies to change coverage options due to the release of the cheaper product.

The introduction of the cheaper version of the EpiPen came after outrage concerning the huge increase to the drug’s price over the last few years. Mylan NV has increased the price of the EpiPen by 400% since 2009. A two-pack of the drug went for $100 in 2009. However, the price was up to $609 in 2016, reports CNN.

It isn’t just Cigna Corporation that is throwing the expensive version of the EpiPen to the side. CVS Health Corp (NYSE:CVS) is now selling its own generic version of the EpiPen to customers. It is only charging $109.99 for a two-pack of the drug, which is the lowest cash price in the market for it.

EpiPen is a product that allows customers to inject epinephrine into those suffering from allergy attacks. The allergy attacks that it stops can be life threatening.

CI stock was up 1% and MYL stock was down 2% as of Thursday morning.


Article printed from InvestorPlace Media, https://investorplace.com/2017/01/cigna-corporation-epipen-mylan-nv-myl/.

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