The past few months have not been kind to drugmaker Mylan (MYL) . The company has found itself at the heart of a prescription-pricing scandal that has dragged its stock down from near the $50-per-share mark in August to recent levels around $38.
On Wednesday, shares of the controversial pharmaceutical company fell slightly on news that another company would face increased competition. It looks like Mylan's bad fortunes aren't going to reverse anytime soon. Investors should stay clear.
Mylan's most famous and popular product is the EpiPen, a personal medical device that delivers a lifesaving dose of epinephrine to patients suffering from acute asthma attacks and anaphylactic shock.
And the Mylan marketing machine -- which allegedly included the CEO's mother, who served as head of the National Association of State Boards of Education -- saw to it that EpiPens became necessities in schools and mothers' pocketbooks.
Nine years ago, a package of two EpiPens cost only about $94, according to this Associated Press report. But the price of a two-pack has skyrocketed to about $600. Industry experts have said that it costs only about $30 to manufacture one EpiPen, according to Money.
A bipartisan congressional investigation earlier this year led to widespread public indignation against Mylan. The company received a $465 million fine. And investors were clearly displeased, sending the stock sharply lower.
Now privately held rival Kaleo has announced that it is re-releasing its own version of the EpiPen.
