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EpiPen competitor will be out in February, free to 200M people

Five months after the CEO of Mylan faced an irate House panel over price increases for its EpiPen auto injectors, a former competitor will be back next month — at a far higher list price, the company announced Thursday.

<p><span class="cutline js-caption" style="display: block; font-family: arial, sans-serif; font-size: 11px; font-weight: bold;">The Auvi-Q auto injector will be a competitor to the EpiPen, which is much larger.</span><span class="credit" style="font-style: italic; font-family: arial, sans-serif; font-size: 11px;">(Photo: Kaleo)</span></p>

Five months after the CEO of Mylan faced an irate House panel over price increases for its EpiPen auto injectors, a former competitor will be back next month — at a far higher list price, the company announced Thursday.

Kaleo, the maker of the Auvi-Q, says the price paid by consumers with commercial insurance will still be far lower for its reintroduced epinephrine auto injector than any of its brand name or generic competitors.

The Auvi-Q has voice instructions that help guide a user with step-by-step instructions through the epinephrine delivery process and an automatic retractable needle system, which is a first for epinephrine auto-injectors,

These features made the product popular with parents before it was recalled in late 2015 over issues related to dosing. Lower-income consumers and those with high-deductible plans will likely be relieved that they will get the injectors for free or for very low out-of-pocket costs.

Still, the $4,500 list price — even with rebates — is "an attempt to push an extraordinary burden on to the commercial and federal (insurers)," says Michael Rea, CEO of Rx Savings Solutions, which represents insurers.

No one pays the list price, Kaleo CEO Spencer Williamson said Thursday. "Our view is that the most important price is the price to the patient," he said. Anything else would be paid by insurers, he said.

Although Williamson repeatedly said many plans will cover Auvi-Q, he refused to name any of them.

Kaleo's news follows CVS' launch last week of a generic version of Impax Laboratories’ Adrenaclick injector that sells for $109.99 per two-pack before potential discounts. That's about one-third the initial $300 list price of the generic version of the EpiPen that Mylan announced after criticism about pricing.

Although Mylan's generic, as well as one sold by drugmaker Teva, are "technically available" now, Rea says, "we don't know of anyone who actually has received the product or has it in stock at the pharmacy."

Here's why Auvi-Q says it will be cheaper for consumers:

• More than 200 million Americans with commercial insurance — including high-deductible plans — will be able to get it by paying nothing out-of-pocket.

• It will be available free of charge to patients with a household income of less than $100,000 who don't have government or commercial insurance.

• Patients who don't have government or commercial insurance and have household incomes above $100,000 will be charged a cash price of $360.

Eric Edwards, a physician who invented the Auvi-Q with his twin brother who also suffers from deadly allergies, says patients should never have “only have one choice." Williamson calls the reintroduction "a bold program that’s going to do what’s right for customers."

Kaleo also come under fire for its $4,500 opioid overdose naloxone auto-injector, Evzio.

"Kaleo has been touting all of the free product or coupons they give away," says Rea. "But somebody pays for that free product at the end of the day."

What's your health care experience? Tell us at healthinsurance@usatoday.com

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