EpiPen price rises could mean more riches for Mylan executives

New York Times

1 September 2016 - The New York Times won't let this issue die; some might call it as 'delayed hypersensitivity'.

Heather Bresch, chief executive at Mylan, the pharmaceutical company that has been vilified for price increases on its EpiPen allergy treatment, maintains that her company has attained a sort of capitalist nirvana — it does good for others while doing well for itself.

But the argument that Mylan has achieved a balance benefiting all of its stakeholders simply doesn’t hold up when viewed through the prism of the company’s recent proxy filings. Those materials detail the company’s executive pay and show, for example, that Mylan’s top brass received a windfall when it incorporated overseas in 2014 to cut its tax bill sharply.

The filings also show that under a special, one-time stock grant created in 2014, top executives — including Ms. Bresch — stand to reap further riches at least partly on the back of price increases on the EpiPen. Under the grant, Mylan executives will be rewarded if the company’s earnings and stock price meet certain goals by the end of 2018.

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Michael Wonder

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Michael Wonder

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Medicine , US , Pricing