Re EpiPen outrage: Silicon Valley engineers figure real cost to make lifesaving auto-injector two-pack - about $8

["Dave Farber" <dave () farber net>]

---------- Forwarded message ----------
From: *Synthesis:Law and Technology* <synthesis.law.and.technology () gmail com
>
Date: Saturday, October 1, 2016
Subject: Re EpiPen outrage: Silicon Valley engineers figure real cost to
make lifesaving auto-injector two-pack - about $8
To: dave () farber net
Cc: ip <ip () listbox com>


Dave,

With respect, Mylan inherited the paperwork so that is pretty much a
non issue.  As for sterile injectables, the cost of disposable needles
is miniscule compared to the cost of the pens today.  As for
insurance, I'm no expert but if they can insure disposable needles and
insure pure injectible insulin then they can insure an epi-pen like
device.  The proof ?  come to Canada where the cost is a fraction of
what people pay in the US.  Even the expensive online pharmacies where
you pay for convenience and privacy sell the epi pen for a lot less.
So the argument that it costs a lot more than 8 bucks seems lacking.
This is not a Theranos situation.  There is an existing product and a
few competitors.

On 10/1/16, Dave Farber <farber () gmail com <javascript:;>> wrote:
> Begin forwarded message:
>
> > From: Sidney Karin <skarin () ucsd edu <javascript:;>>
> > Date: October 1, 2016 at 7:39:46 PM EDT
> > To: "dave () farber net <javascript:;>" <dave () farber net <javascript:;>>
> > Subject: Re: [IP] EpiPen outrage: Silicon Valley engineers figure real
> > cost to make lifesaving auto-injector two-pack - about $8
> >
> > Dave,
> >
> > For IP if you like.
> >
> > Cute.  What about the cost of getting (ongoing) FDA approval for
> > sterile medical device manufacturing? Packaging that preserves
> > sterility?   Product liability insurance for something that you stick
into
> > humans?  NRE?  Etc. etc.
> >
> > I don’t know what the total cost of an Epipen is or should be,
> > but I do know that the Silicon Valley tech industry  and the medical
> > care industry have a number of significant differences.  Theranos
> > comes to mind.
> >
> > Cheers,
> >
> > ……..Sid
> >
> >
> >
> >
> >
> >
> >
> > > On Oct 1, 2016, at 2:24 PM, Dave Farber <farber () gmail com <javascript:;>>
wrote:
> > > Begin forwarded message:
> > >
> > > > From: Hendricks Dewayne <dewayne () warpspeed com <javascript:;>>
> > > > Date: October 1, 2016 at 1:11:47 PM EDT
> > > > To: Multiple recipients of Dewayne-Net <dewayne-net () warpspeed com
<javascript:;>>
> > > > Subject: [Dewayne-Net] EpiPen outrage: Silicon Valley engineers figure
> > > > real cost to make lifesaving auto-injector two-pack - about $8
> > > > Reply-To: dewayne-net () warpspeed com <javascript:;>
> > > >
> > > > [Note:  This item comes from friend Ed DeWath.  DLH]
> > > >
> > > > EpiPen outrage: Silicon Valley engineers figure real cost to make
> > > > lifesaving auto-injector two-pack — about $8
> > > > By TRACY SEIPEL
> > > > Oct 1 2016
> > > > <http://www.mercurynews.com/2016/10/01/epipen-outrage-
silicon-valley-engineers-figure-true-cost-to-make-lifesaving-auto-injector-
about-10/>
> > > > In his 93 years, Bob Wallace has seen some product-pricing doozies over
> > > > the decades, but the nonstop national furor over the stratospheric
price
> > > > hikes for EpiPens — now retailing above $700 for a two-pack — was the
> > > > final shot.
> > > >
> > > > “I’m a cheapskate,” the Saratoga inventor and businessman proudly
> > > > proclaimed. “And this is not rocket science. People should be aware of
> > > > what they’re getting hooked for.”
> > > >
> > > > So in time-honored Silicon Valley tradition — and piqued by the
> > > > EpiPen-maker Mylan’s corporate tagline “Seeing Is Believing” — Wallace
> > > > and Roland Krevitt, a veteran Scotts Valley manufacturing and tooling
> > > > consultant, set out to demystify the cost to produce the EpiPen, piece
> > > > by piece.
> > > >
> > > > The auto-injector delivers a lifesaving dose of adrenaline to treat
> > > > serious allergic reactions to everything from bee stings to food.
> > > >
> > > > Hunched over his vintage Shopsmith table saw in his garage, Wallace
> > > > sliced open the plastic injector to begin reverse-engineering the
> > > > device. Then it was Krevitt’s turn to break out his gram scale and
> > > > caliper to crunch the costs for molding and manufacturing the nozzle,
> > > > needle, syringe, springs, safety cap — and 0.3 mg of epinephrine.
> > > >
> > > > Their startling estimate of the cost for a two-pack of EpiPens: $8.02.
> > > >
> > > > And that even included the bright-yellow box.
> > > >
> > > > “Talk about sleight of hand,” said Krevitt, who isn’t naive to R&D,
> > > > marketing, distribution and other costs that go into brand name
> > > > pharmaceuticals — but is still floored by what he figures is a
> > > > 90-plus-fold markup over the retail price. “These guys put a magician
to
> > > > shame.”
> > > >
> > > > From Capitol Hill to the corner drug store, the pharmaceutical giant
> > > > Mylan is the latest drugmaker to withstand a public lashing over
> > > > skyrocketing drug prices. While politicians and patients demand
> > > > explanations, pointing out the same drugs are sold for a fraction of
the
> > > > price in other countries, policy experts and drug makers blame an
> > > > American health care system built on an ever-expanding pool of
middlemen
> > > > whose piece of the action is driving up the final bill.
> > > >
> > > > Since Mylan bought the EpiPen in 2007, the device’s wholesale price has
> > > > soared from $100 to more than $600 for a now-standard two-pack.
> > > >
> > > > The retail price is even steeper — the list price at CVS pharmacy, for
> > > > example, is $733. Mylan insists most patients pay less than $50 out of
> > > > pocket for a two-pack, though critics say insurers pass the higher
> > > > wholesale drug costs along to consumers in other ways.
> > > >
> > > > But what does it really cost to make?
> > > >
> > > > [snip]
> > > >
> > > > Dewayne-Net RSS Feed: <http://dewaynenet.wordpress.com/feed/>
> > >
> > > Archives   | Modify Your Subscription | Unsubscribe Now
> >
> > ++++++++++++++++++++++++++++++++++++++++++++++++
> >      Sidney Karin Ph.D., P.E.                  skarin () ucsd edu
<javascript:;>
> > 858-534-5075
> >      Professor Emeritus,
> >      Department of Computer Science and Engineering
> >      Director Emeritus,
> >      San Diego Supercomputer Center
> >      University of California, San Diego
> >      9500 Gilman Drive
> >      La Jolla,  CA  92093-0505
>
>
>
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