Letter to Spencer Williamson, CEO of Kaleo - Presses for Answers on High Prices of Medications that Treat Opioid Overdoses and Food Allergies

Letter

Dear Mr. Williamson:

I am writing to express concern over your company's drug pricing for two products: Evzio and AUVI-Q. First, kaléo has increased the price of a two-pack of Evzio, a device containing naloxone that treats life-threatening opioid overdoses, from $690 to over $4,500 during the last three years. This price increase is worrisome. Due to the severity of the opioid epidemic and Evzio's life-saving attributes, it is critical that your products remain affordable to Americans.

Second, you announced that you are re-introducing AUVI-Q, an epinephrine injector for those with food allergies, back to the United States at a price of $4,500 for a two-pack. This price is much higher than Mylan's two-pack price of $600, which understandably sparked outrage over the high costs of these products. Your price of $4,500 for a two-pack is especially disturbing, as more competition should mean lower--rather than higher--prices for epinephrine injectors.

I understand that kaléo is trying to mitigate the impact on consumers by providing Evzio for free to cities, first responders, and drug treatment programs, and offering various programs to help ensure that no consumer pays the $4,500 price for AUVI-Q. While these subsidies and programs are noteworthy, I am concerned that they do not address the underlying problem of rising prescription drug costs. These programs may simply shift costs to other parts of the healthcare system, which are eventually passed on to consumers through higher premiums. Many worry this pricing strategy may allow pharmaceutical companies to benefit from increased profits while hiding the true costs to consumers.

I want to understand the pricing approach kaléo has adopted. Please respond to the following questions.

1. Why did you increase the price of Evzio by 700 percent over the last three years?

a. How much has the cost of manufacturing Evzio changed over the last three years?

2. In explaining the pricing of AUVI-Q, you said "[t]he reason the list price is high is it's the only way we can make sure patients have access and can get it for $0." Please explain why kaléo needs to adopt this pricing system to ensure patient access to AUVI-Q.

3. Other companies are pricing a two-pack of epinephrine injectors in the $100 to $300 dollar range in addition to providing generous rebates. Why is kaléo unable to follow a similar pricing strategy for your epinephrine injector?

I am sure you appreciate the importance of making prescription drugs affordable. We must make the market work for consumers. I look forward to your responses.

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