The Mylan N.V. (NASDAQ:MYL) EpiPen reign may be about to come to an end, the Food and Drug Administration having approved an affordable alternative. Adamis Pharmaceuticals Corp (NASDAQ:ADMP) generic version, Symjepi, is the latest addition in the highly competitive space.
The fact that Adami’s product will be much cheaper means Mylan will struggle to ship as many products as it did in the past. The launch could not have come at a worse time for the pharmaceutical company which has seen its market share trimmed with the launch of alternatives from the likes of Kaleo Auvi.
Mylan has been the subject of immense criticism over the price it charges for its EpiPen products. Outrage from the public has already attracted the attention of legislators who asked the company to justify why it charges consumers up to $600 for its products. The company was later fined $465 million for wrongly classifying its EpiPen under the Medicaid Drug Rebate Program.
Pricing wars should be a point of concern for Mylan given the reaction that Adamis got on announcing the approval of Symjepi by the FDA.
“Pricing is on everyone’s mind as it should be given all of the pricing controversies around EpiPen. Pricing for Symjepi hasn’t been determined yet as that will be set around the time of the launch. […] Adamis does intend to position this product as the low-cost alternative to the other offerings in this market,” said Adamis Spokesperson.
Symjepi’s cost advantage is not the only thing that Mylan will have to worry about. The new prefilled syringe is not an auto-injector; taking its ease of use to another level. The fact that some doctors struggle to use auto-injectors helps bolster the case of why Symjepi could be an attractive prospect for the mass market.
Adami’s product is also highly portable at four inches long, something that observers believe will give it a competitive edge against the other alternatives. Mylan might have to rethink its EpiPen Strategy if it is to generate any sales going forward.
Mylan stock was up by 1.39% in Monday’s trading session ending the day at $37.23 a share.