EpiPen rival Kaleo to offer Auvi-Q emergency allegery auto-injector to some at no cost

Privately-held drug maker Kaleo yesterday said it would offer its Auvi-Q emergency allergy auto-injector at no cost to many consumers, but would offer the same to insurance companies at a whopping $4,500.

EpiPen maker Mylan NV came under intense criticism last year when it increased price for a pair of its life-saving auto-injectors to $600. But it said it would sell its own generic EpiPen for about half that price.

Kaleo, which plans a relaunch of Auvi-Q on 14 February after a product recall, appeared to have adopted the strategy as to avoid angry reactions from parents of children who depended on the product and others prone to potentially deadly allergic reactions.

Consumers with commercial or government insurance would be able to obtain Auvi-Q at no charge, according to the company and it would also make the product available for free to patients with no insurance and a household income of less than $100,000.

Auvi-Q would retail at a cash price of $360 for those who did not qualify for the emergency treatment at no charge, according to the Richmond, Virginia-based company.

But the starting price from which health insurance companies would negotiate discounts or rebates would be $4,500.

For years, pharmaceutical company Mylan had  hiked the price on EpiPen - to $609 for a two-pack, thanks to a virtual monopoly on the growing allergy injection market.

Mylan had faced competiton before - including from the Auvi-Q before, but thanks to EpiPen's market dominance and familiarity to patients and doctors, Mylan had been able to dominate the epinephrine auto-injector space.

According to commentators, now, EpiPen would be in direct competition with Auvi-Q and with the authorised generic of another auto-injector called Adrenaclick. Last week, CVS Health said last week that it would offer a two-pack of the generic version of Adrenaclick for $110.