WHEN: TODAY, THURSDAY, AUGUST 25
WHERE: CNBC'S "SQUAWK BOX"
Following is the unofficial transcript of a FIRST ON CNBC interview with Mylan CEO Heather Bresch on CNBC's "Squawk Box" (M-F, 6AM-9AM ET) today, Thursday, August 25th. Following is a link to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000545928, http://video.cnbc.com/gallery/?video=3000545932 and http://video.cnbc.com/gallery/?video=3000545934.
All references must be sourced to CNBC.
KAYLA TAUSCHE: MEANWHILE, PHARMACEUTICAL COMPANY MYLAN UNDER FIRE FOR HIKING THE PRICE OF ITS EPIPEN. MYLAN RAISING THE COST OF THE INJECTABLE ALLERGY MEDICINE BY OVER 400% IN RECENT YEARS. THIS MORNING, THE COMPANY ANNOUNCING PLANS TO BOOST ACCESS TO ITS EPIPEN INJECTORS BY EXPANDING COST CUTTING PROGRAMS FOR SOME PATIENTS. THE STOCK MOVING HIGHER AT THIS HOUR AFTER BEING HIT HARD OVER THE LAST FOUR SESSIONS. IT'S CURRENTLY UP 3.5% IN PREMARKET TRADING. LET'S GET TO BRIAN SULLIVAN WHO'S A COUPLE BLOCKS AWAY WITH MYLAN CEO FOR A FIRST ON CNBC INTERVIEW. BRIAN, OVER TO YOU.
BRIAN SULLIVAN: ALL RIGHT, KAYLA, THANK YOU VERY MUCH. WE ARE HERE WITH THE CEO THAT IS NO DOUBT THE CENTER OF A NATIONAL FIRE STORM. I THINK THAT'S FAIR TO SAY. HEATHER BRESCH, CEO OF MYLAN LABS, JOINING US FOR FIRST ON CNBC. THE PRICE HIKE THAT KAYLA JUST REFERRED TO THAT'S BEEN IN THE NEWS THE LAST FEW DAYS HAS BEEN LABELED OUTRAGEOUS BY HILLARY CLINTON. EGREGIOUS BY BERNIE SANDERS. GREEDY BY THE WHITE HOUSE. AND PARENTS ALL OVER THE COUNTRY ARE OUTRAGED THAT THEY'VE GOT TO PAY MORE FOR THEIR EPIPEN. HOW DO YOU RESPOND TO ALL THAT?
HEATHER BRESCH: WELL, I THINK THAT WE RESPONDED THIS MORNING FIRST AND FOREMOST ENSURING THAT EVERYBODY WHO NEEDS AN EPIPEN HAS AN EPIPEN. AS A MOTHER, I CAN ASSURE YOU THE LAST THING THAT WE WOULD EVER WANT IS NO ONE TO HAVE THEIR EPIPEN DUE TO PRICE. SO LIKE I SAID, OUR RESPONSE HAS BEEN TO TAKE THAT IMMEDIATE ACTION OF MAKING SURE THAT EVERYONE HAS AN EPIPEN. SO THAT WAS FIRST IN FRONT AND THAT'S WHY WE'RE HERE TODAY IS TO MAKE SURE THAT THAT MESSAGE IS OUT THERE LOUD AND CLEAR AND THAT NO ONE IS FALLING THROUGH THE CRACKS.
SULLIVAN: OK. AND YOU'VE GOT SOMETHING TO ANNOUNCE, WHICH IS GOING TO HELP THE PAYMENT SIDE. WE'RE GOING TO GET TO THAT IN A MOMENT, BUT HELP OUR AUDIENCE – MANY OF WHOM ARE PARENTS THEMSELVES – UNDERSTAND HOW THE PRICE OF A DRUG GOES FROM $60, $75, $100 FIVE OR TEN YEARS AGO TO $600 TODAY. HOW DOES THAT HAPPEN?
BRESCH: SO, BRIAN, LOOK. FIRST, AS I PUT OUT TODAY, JUST TO TRY TO HELP BECAUSE I KNOW THIS IS A COMPLICATED CONVERSATION AROUND HEALTH CARE AND INSURANCE, THAT THE $600 IS A LIST PRICE. THAT'S $608 IS A LIST PRICE. WHAT MYLAN TAKES FROM THAT, OUR NET SALES IS $274. SO $137 PER PEN. AND AGAINST THAT, MANUFACTURING THE PRODUCT, DISTRIBUTING THE PRODUCT, ENHANCING THE PRODUCT, INVESTING. WHEN WE TOOK OVER THIS PRODUCT EIGHT YEARS AGO, THERE WAS VERY, VERY LITTLE AWARENESS. WE TOOK ON – WE HAVE DOUBLED THE LIVES OF PATIENTS THAT ARE CARRYING AN EPIPEN. WE HAVE PASSED LEGISLATION IN 48 STATES TO ALLOW UNDESIGNATED EPIPENS TO BE IN SCHOOLS. AND WHAT THAT MEANS, THERE HAVE BEEN UNFORTUNATE TRAGIC EVENTS LIKE A 7-YEAR-OLD IN VIRGINIA WHO DIED ON THE SCHOOLYARD BECAUSE THE SCHOOL HAD EPIPENS, BUT NOT IN HER NAME. SO WE FOUGHT. THAT TAKES TIME AND RESOURCES TO GET OUT THERE AND MAKE SURE THAT PEOPLE ARE AWARE OF THE ISSUES AND THAT PEOPLE UNDERSTAND THAT EPIPENS NEED TO BE EVERYWHERE. I SAID IT'S JUST LIKE A DEFIBRILLATOR. WHEN YOU NEED –WHEN YOU ARE HAVING A SEVERE ALLERGIC REACTION, YOU NEED EPIPEN IN SECONDS.
SULLIVAN: BUT SURELY, HEATHER, SURELY YOU MUST UNDERSTAND THE OUTRAGE. AS SOMEBODY I TALKED TO LAST NIGHT SAID, PEOPLE ARE OUTRAGED BECAUSE IT SEEMS OUTRAGEOUS. THAT THE AMERICAN MEDICAL ASSOCIATION HAS SAID THIS IS BASICALLY THE SAME PRODUCT IT WAS IN 2009 AND YET THE PRICE HAS GONE UP 300 OR 400 FOLD.
BRESCH: SO LOOK, NO ONE'S MORE FRUSTRATED THAN ME. I'VE BEEN IN THIS BUSINESS FOR 25 YEARS.
SULLIVAN: BUT YOU'RE THE ONE RAISING THE PRICE, THOUGH. HOW CAN YOU BE FRUSTRATED?
BRESCH: MY FRUSTRATION IS THERE'S A LIST PRICE OF $608. THERE IS A SYSTEM. THERE ARE – I LAID OUT THAT THERE ARE FOUR OR FIVE HANDS THAT THE PRODUCT TOUCHES AND COMPANIES THAT IT GOES THROUGH BEFORE IT EVER GETS TO THAT PATIENT AT THE COUNTER. NO ONE – EVERYBODY SHOULD BE FRUSTRATED. I AM HOPING THAT THIS IS AN INFLECTION POINT FOR THIS COUNTRY. OUR HEALTH CARE IS IN A CRISIS. IT'S NO DIFFERENT THAN THE MORTGAGE FINANCIAL CRISIS BACK IN 2007. THIS BUBBLE IS GOING TO BURST.
SULLIVAN: WHAT BUBBLE? WHAT ARE YOU REFERRING TO?
BRESCH: SO WHEN YOU WALK UP TO A COUNTER, I THINK THAT IT'S FAIR TO SAY ANY TIME YOU'RE SHOPPING FOR ANYTHING, YOU KNOW WHAT THAT PRODUCT IS GOING TO COST WHEN YOU WALK UP TO THE COUNTER. ONLY IN HEALTH CARE, AND IN THIS INSTANCE PHARMACEUTICALS, DO YOU WALK UP TO THAT PHARMACY COUNTER, YOU COULD HAVE PAID $25 YESTERDAY AND YOU'RE PAYING $600, $1,000, $2,000. DEDUCTIBLES WENT OVERNIGHT. WHAT IS COMING OUT OF A PATIENT'S POCKET WENT FROM $100 TO $3,000.
SULLIVAN: YEAH. AND ALL THEY KNOW IS – AND LISTEN, LET'S BE FAIR. YOU KNOW THIS. I MEAN, MOM AND POP, WHEN THEY GO TO A WALGREENS OR A CVS AND HAVE TO PUNT DOWN $500, $600 FOR AN EPIPEN AND SEE MYLAN ON IT, DO THEY CARE ABOUT ALL OF THOSE OTHER PEOPLE MAKING THE CUT? THEY DON'T.
BRESCH: NO. AND THEY SHOULDN'T CARE. THAT'S WHY CONGRESS AND THE LEADERS OF THIS COUNTRY NEED TO QUIT PUTTING THEIR TOE IN THIS TOPIC AND REALLY FIX THE SYSTEM. WE HAVE AN OUTDATED, INEFFICIENT SYSTEM. THE PATIENT SHOULDN'T. BUT YOU KNOW WHAT'S HAPPENING? THE PATIENT IS PAYING TWICE. THEY'RE PAYING FULL RETAIL PRICE AT THE COUNTER AND THEY ARE PAYING HIGHER PREMIUMS ON THEIR INSURANCE. IT WAS NEVER INTENDED THAT A CONSUMER THAT THE PATIENTS WOULD BE PAYING LIST PRICE. NEVER. THE SYSTEM WASN'T BUILT FOR THAT. SO IF WE'RE GOING TO CONSUMERIZE HEALTH CARE, WE WANT TO GET YOU ENGAGED. PATIENTS NEED TO GET ENGAGED IN THEIR HEALTH CARE.
SULLIVAN: OK AND WHAT YOU ANNOUNCED TODAY WAS YOU'VE TRIPLED THE REBATE.
BRESCH: YES.
SULLIVAN: THERE'S A REBATE SO THAT'S WHAT YOU'RE TALKING ABOUT WITH LIST PRICE VERSUS WHAT PEOPLE WILL ACTUALLY GET BACK. WHY NOT JUST ROLL BACK THE PRICE INCREASE? WHY DO THE AROUND THE WAY REBATE?
BRESCH: BRIAN, HERE'S THE PERVERSE THING. HAD WE REDUCED THE LIST PRICE, I COULDN'T ENSURE THAT EVERYONE WHO NEEDS AN EPIPEN GETS ONE. SO WE WENT AROUND THE SYSTEM. THAT'S WHAT WE ANNOUNCED TODAY. THIS SAVINGS CARD IS EQUIVALENT TO CASH. $300. SO EFFECTIVELY, WE'RE CUTTING THE PRICE IN HALF, BUT WE'RE LETTING YOU TAKE CONTROL OF THAT. WE'RE LETTING THE PATIENT TAKE CONTROL OF THAT. WE ENHANCED ALREADY EXISTING PROGRAMS. THESE PROGRAMS EXISTED, BUT THIS PHENOMENON, WHICH IS NEW AND LITERALLY HAS HAPPENED OVERNIGHT, PEOPLE DON'T UNDERSTAND THEIR COVERAGE AND HOW COULD THEY? IT IS COMPLICATED.
SULLIVAN: SO HIGH LEVEL POLITICIANS ARE SAYING ROLL IT BACK. JUST CANCEL THE PRICE INCREASE. WHY CAN'T YOU DO THAT?
BRESCH: I HAVE TO PLAY – THE REALITY IS AND THE BRAND PHARMACEUTICAL MARKET, THIS ISN'T AN EPIPEN ISSUE. THIS ISN'T A MYLAN ISSUE. THIS IS A HEALTH CARE ISSUE. PHARMACEUTICALS, THE IRONY IS THAT THE SYSTEM INCENTIVIZES HIGHER PRICES. AND IT'S THE CONVERSATION THAT NO ONE HAS WANTED TO HAVE. EVEN YOU GUYS, THE MEDIA, AS YOU'VE BEEN COVERING THIS, THE MATH. JUST THE BASIC MATH OF SHOWING THE $608 AND WHAT MYLAN'S GETTING IN THAT SELLS. THERE'S $1.3 BILLION OUT THERE THAT IS EXCHANGING HANDS. THAT IS REAL DOLLARS. THIS ISN'T MONOPOLY MONEY. IT IS REAL DOLLARS EXCHANGING HANDS AND IT'S NOT EFFICIENT. SO CONSUMERS – I SAY WE'RE THE BEST SHOPPERS IN THE WORLD. WE WANT THE BEST PRODUCT AT THE LOWEST PRICE.
SULLIVAN: SO WHAT YOU'RE SAYING IS, LET'S CALL IT $600. WHAT YOU'RE SAYING IS THAT WE SHOWED THAT GRAPHIC AND IF PEOPLE ARE ON THE RADIO, IT'S BASICALLY FIVE PEOPLE IN BETWEEN. THE PHARMACY BENEFIT MANAGERS FIRST, THE RETAILERS, THE WHOLESALERS. EVERYBODY'S TAKING A BIGGER CUT. AND IF I'M HEARING YOU RIGHT, YOU'RE SAYING YOU CAN'T CUT THE PRICE BECAUSE THEY WON'T CUT THEIR PRICES?
BRESCH: RIGHT. I CAN'T CONTROL –
SULLIVAN: SO IT WOULD BE MORE EXPENSIVE AT THE END. THAT SEEMS WEIRD.
BRESCH: THERE'S NO QUESTION. THE SYSTEM IS BROKEN. I'M SAYING I LOOK AT THIS – LOOK, LIKE I SAID, FIRST AND FOREMOST, WE WANT EVERYONE WHO NEEDS AN EPIPEN TO HAVE ONE. AS A MOTHER, I'M GOING TO TELL YOU IT BREAKS MY HEART. THERE'S NO ONE OUT THERE THAT SHOULDN'T HAVE IT. I KNOW THE TRAGEDY THAT STRIKES. WE'VE WORKED TIRELESSLY WITH ADVOCACY GROUPS. I'VE BEEN ON THE PHONE DAILY ENSURING THAT WE ARE DOING EVERYTHING TO NOT LET ANYONE FALL THROUGH THE CRACKS.
SULLIVAN: BUT YOU UNDERSTAND HEATHER THE HEADLINES WHICH IS EPI-PENS WHICH ARE NEEDED BY MILLIONS OF CHILDREN, THE PRICE GOES FROM 50 BUCKS TEN YEARS TO $500 OR $600. TODAY AND YOU'RE MAKING $18 MILLION A YEAR. YOU UNDERSTAND HOW THAT LOOKS.
BRESCH: BRIAN, LOOK. I UNDERSTAND BETTER THAN ANYONE THAT FACTS ARE INCONVENIENT TO HEADLINES. AND WHY I'M HERE TODAY AND WHY I WANT TO CHANGE THIS CONVERSATION LIKE I SAID FIRST OF ALL SO EVERYONE HAS ACCESS. LET'S TALK ABOUT OVER THE LAST EIGHT YEARS WHAT WE'VE DONE TO YOUR POINT TO MAKE SURE THE PEOPLE WHO NEED IT HAVE IT. WHEN WE PASSED LEGISLATION IN 48 STATES TO ENSURE THAT THE STATES -- THAT SCHOOLS CAN HAVE EPI-PENS, WE HAVE GIVEN OUT 700,000 FREE EPI-PENS. WE STOCKED 65,000 PUBLIC SCHOOLS IN THIS COUNTRY WITH FREE EPI-PENS TO ENSURE THEY'RE THERE WHEN NEEDED. IN ONE YEAR ALONE 2015 THERE WERE A THOUSAND ANAPHLATIC EVENTS IN SCHOOLS AND 25% OF THE TIME PEOPLE HAD NO IDEA THEY HAD A KNOWN ALLERGY. SO THE EPI-PENS WERE USED, THEY WERE THERE TO PREVENT SERIOUS CONTINUED ADVERSE EVENTS. SO NOBNODY WANTS THEM EVERYWHERE MORE THAN I DO. WE'RE NOW PASSING LEGISLATION, 30 STATES TO HAVE THEM IN RESTAURANTS, HOTELS. BECAUSE LIKE I SAID, THEY NEED TO BE EVERYWHERE BECAUSE WHEN YOU NEED THEM, SECONDS COUNT.
SULLIVAN: BUT THE CYNICS WOULD SAY TO THAT, YOU'RE JUST LEGISLATING IN A NEW MARKET.
BRESCH: I'M LEGISLATING IN THE ACCESS TO EPI-PENS. WHAT I LEGISLATED WAS A PROGRAM WE GIVE THEM FREE TO THE SCHOOLS. LIKE I SAID, WE'VE GIVEN OVER 700,000 TO 65,000 PUBLIC SCHOOLS. SO WE'RE TRYING TO GET THEM SO BUSINESSES CAN HAVE THEM CONVENIENTLY, RESTAURANTS. EVERY DAY IF THERE ARE UNNECESSARILY TRAGIC DEATHS HAPPENING EVERY DAY.
SULLIVAN: I WANT TO GO BACK TO THE ISSUE OF THE SYSTEM, IN A WAY. TO BE FAIR, "THE NEW YORK TIMES" THIS MORNING POINTS OUT THE AVERAGE PRICE OF A PRESCRIPTION DRUG NOT MYLAN'S EVERBODY IS UP 40% IN A DECADE. AT THE SAME TIME COPAYS AND DEDUCTIBLES ARE ALSO GOING UP. SO MOM AND POP AT HOME, ALL THEY KNOW IS WHATEVER IT IS, THE EPI-PEN OR ANY VARIETY OF DRUGS OUT THERE, THAT THEY'RE PAYING MORE AND THEIR INSURANCE COMPANY IS DOING LESS. WHY HAS THIS HAPPENED? HOW HAVE WE GOTTEN HERE? PEOPLE ARE GOING BANKRUPT ON MEDICAL COSTS AND PRESCRIPTION DRUG COSTS.
BRESCH: I COULDN'T AGREE MORE. WE FIGHT -- LET ME JUST SAY THIS. MYLAN, WE HAVE OVER 600 PRODUCTS IN THE UNITED STATES. WE FIGHT EVERY DAY TO GET AFFORDABLE MEDICINE OUT THERE. I THINK WE DO IT AS GOOD AS ANYBODY. YESTERDAY WE INVALIDATED A PATENT ON A PRODUCT FOR MULTIPLE SCLEROSIS THAT COST $80,000 A YEAR. $80,000. SO WHILE --
SULLIVAN: YOU INVALIDATED THE PATENT. WHAT DOES THAT MEAN FOR THE COST OF THE DRUG? FOR THOSE SUFFERING FROM M.S. THAT NEED THAT DRUG?
BRESCH: HOPEFULLY AS SOON AS WE CAN GET OUR PRODUCT APPROVED, IT'S GOING TO MEAN INCREASED COMPETITION AND IT'S GOING TO LOWER THE PRICE. IN THE BRAND ARENA, WHAT YOU HAVE TO SEPARATE AND THIS IS WHAT IS VERY DIFFICULT GENERIC PRODUCTS, IT WORKS VERY DIFFERENTLY IN THE SYSTEM THAN BRAND PRODUCTS. THE SYSTEM INSENTIVIZES HIGHER PRICES ON THE BRAND. AND IF YOU DON'T PLAY IN THE SYSTEM, IF YOU DON'T -- IN THE SYSTEM THAT'S BROKEN TODAY, YOUR PRODUCTS AREN'T GOING TO GET TO PATIENTS. BECAUSE OF THE LIVES COVERED BY ALL THE MIDDLE MEN YOU JUST TALKED ABOUT. MY POINT IS PATIENTS ARE PAYING RIGHT NOW TWICE. THEY'RE PAYING FULL RETAIL PRICE AT THE COUNTER AND THEY'RE PAYING HIGHER PREMIUMS. IT'S TIME -- IT'S TIME. WE'VE TALKED ABOUT THIS. YOU GUYS HAVE COVERED PRICE INCREASES ONE STORY AFTER THE NEXT. AND THE NEXT STORY IS GOING TO COME AND GO. THIS ELECTION CYCLE IS GOING TO AND I HOPE -- I CAN ASSURE YOU OF THIS. I'M COMMITTED TO DRIVE CHANGE. BECAUSE CONGRESS -- THE LEADERS, THE SENATORS, I'VE CALLED ALL OF THEM. I WANT TO HAVE A FACE-TO-FACE MEETING. PRICE IS ONE PART OF THE PROBLEM THERE'S NO QUESTION.
SULLIVAN: YOU DO? BECAUSE A BUNCH OF B--PARTISAN SENATORS WOULD LIKE TO SPEAK WITH YOU AS WELL.
BRESCH: THAT'S GOOD BECAUSE THEY HAVEN'T CALLED ME BACK TO SET A DATE.
SULLIVAN: HAVE YOU REACHED OUT TO SENATORS
BRESCH: I'VE REACHED OUT TO SENATORS. GRASSLEY, KLOBUCHAR, WARNER. ABSOLUTELY.
SULLIVAN: YOU HAVE REACHED OUT TO THEM?
BRESCH: PERSONALLY.
SULLIVAN: IN THE LAST – WHEN? IN THE LAST FEW DAYS?
BRESCH: TWO DAYS AGO. I CALLED THEM AND SAID I WELCOME THE –
SULLIVAN: AND WHAT DID THEY SAY?
BRESCH: THEY HAVEN'T CALLED ME BACK.
SULLIVAN: WHEN'S THE MEETING? WHEN'S THE MEETING?
BRESCH: THEY HAVEN'T SET IT. I SAID AS SOON AS YOU CAN MEET, I'M THERE. BECAUSE PRICE IS PART OF THE PROBLEM, BUT WE NEED ALL OF THE STAKE HOLDERS AT THE TABLE. YOU CANNOT FIX THE PROBLEM AND THAT'S WHY WE LAID OUT TODAY –
SULLIVAN: WHO NEEDS TO BE AT THAT TABLE? CONGRESS, YOU KNOW THEY'RE GOING TO CALL YOU IN. LET'S SAY THERE IS A HEARING. WHO NEEDS TO BE AT THAT TABLE?
BRESCH: WHO NEEDS TO BE AT THAT TABLE? ALL THE OTHER PLAYERS. PHARMACY PBMs, PHARMACEUTICAL BENEFIT MANAGERS, RETAIL PHARMACISTS, DOCTORS, PHARMACY. THEY NEED TO BE AT THE TABLE BECAUSE THIS SYSTEM NEEDS FIXED. LISTEN, THIS IS THE GREATEST COUNTRY IN THE WORLD THAT WE DELIVER THE BEST PRODUCTS IN THE WORLD. THIS IS AN AREA THERE'S NO TRANSPARENCY, THERE'S NO CLARITY AND NO ONE KNOWS WHAT ANYTHING COSTS.
SULLIVAN: WE ARE THE WORLDWIDE LEADER IN BUSINESS NEWS BECAUSE WE GO ACROSS THE GLOBE. AND SO YOU HEAR FROM PEOPLE AROUND THE WORLD. YOU KNOW WHAT THEY SAY? I'M IN CANADA AND THE EPIPEN IS $100. OR I'M IN GERMANY, AND THE EPIPEN IS $110. WHY IS IT SO MUCH CHEAPER EVERYWHERE ELSE?
BRESCH: LOOK, I'VE WATCHED YOUR GUYS' OVER THESE LAST FEW DAYS. THE REALITY IS WE DO SUBSIDIZE THE REST OF THE WORLD INNOVATION. WE DO SUBSIDIZE AND AS A COUNTRY WE'VE MADE A CONSCIOUS DECISION TO DO SO. AND I THINK THE WORLD'S A BETTER PLACE FOR IT. BUT THAT DOESN'T EXCUSE AN OUTDATED, INEFFICIENT SYSTEM AND WE CAN'T HIDE BEHIND THAT. CONGRESS CAN'T HIDE BEHIND IT ANYMORE BY JUST SAYING PHARMACEUTICAL COMPANIES ARE, YOU KNOW, HORRIBLE CORPORATE CITIZENS. AND THEY'RE GREEDY AND THEN THAT BE THE END OF IT. THEY NEED TO NOT JUST PUT THEIR TOE IN IT. YOU NEED TO GET IN SUBSTANTIVELY AND MEANINGFULLY AND WE NEED TO CHANGE. AND I'M COMMITTED TO THAT. AND I'M GOING – THE ELECTION CAN COME AND GO, THE NEXT NEWS STORY CAN COME AND GO.
SULLIVAN: WELL, LET'S TALK ABOUT THE ELECTION, OKAY? BECAUSE IF I'M A MYLAN SHAREHOLDER AND THE STOCK IS DOWN PRETTY BIG THE LAST COUPLE WEEKS, I WOULD SAY, HEATHER, YOU'RE THE DAUGHTER OF A PROMINENT POLITICIAN AND YOU'RE RAISING PRICES RIGHT IN FRONT OF ONE OF THE MOST CONTESTED ELECTIONS IN AMERICAN HISTORY WHERE THE BIOTECH AND PHARMA INDUSTRY ARE BEING LABELED AS GREEDY CORPORATE OVERLORDS BY MANY HIGH-RANKING MEMBERS OF NOT ONLY CONGRESS, BUT PEOPLE RUNNING FOR ELECTION. WHY NOW?
BRESCH: LOOK, BRIAN. IT'S NOT NOW. WE'VE INVESTED OVER EIGHT YEARS. THIS WASN'T OVERNIGHT. I JUST MENTIONED ALL THE THINGS WE'VE DONE AND WE'RE CONTINUING TO DO. I'M RUNNING A BUSINESS. I TOLD YOU WE HAVE OVER 600 PRODUCTS HERE IN THE UNITED STATES THAT WE GUIDE MID TO SINGLE DIGIT EROSION. DECREASES. I KNOW NO ONE WANTS TO TALK ABOUT PRICE DECREASES, BUT THAT DOES HAPPEN IN THE INDUSTRY TO KEEP MEDICINE AFFORDABLE.
SULLIVAN: DOESN'T SEEM LIKE IT.
BRESCH: I KNOW. I KNOW. BECAUSE ON THE BRAND SIDE, ON THE BRAND SIDE OF THE HOUSE IT'S – THE SYSTEM INCENTIVIZES HIGHER PRICES. THAT LIST PRICE BECAUSE OF ALL OF PLAYERS.
SULLIVAN: ARE THE PHARMACY BENEFIT MANAGERS TAKING A BIGGER CUT?
BRESCH: LOOK, THERE IS NO TRANSPARENCY. I PUT THAT METAL BAR, THE BUCKETS, BECAUSE YOU CAN'T DETERMINE WHO'S GETTING WHAT PIECE OF THE PIE.
SULLIVAN: BECAUSE I'VE READ, AND YOU HEAR, THAT YOUR COST OF THE EPIPEN IS PROBABLY LIKE $3.
BRESCH: LOOK. WE HAVE – IF YOU LOOK AT THE AUTO INJECTOR, WE HAVE MADE CHANGES. WE NEEDLE PROTECT IT SO YOU DON'T SEE THAT NEEDLE. THE EASE OF USE. WHEN YOU ARE IN ANAPHYLACTIC EVENT, YOU NEED THE EXACT RIGHT AMOUNT OF EPINEPHRINE IN SECONDS. AND THAT'S WHAT OUR AUTO INJECTOR DOES. SAFELY AND IT NEEDS TO WORK EVERY TIME.
SULLIVAN: SO YOU – BECAUSE THE ARGUMENT HAS BEEN, WELL, THEY BOUGHT THIS FOR WHATEVER YOU BOUGHT IT FOR FROM MERCK OF GERMANY TEN YEARS AGO. HAVEN'T PUT ANY MONEY INTO IT AND YET HAVE RAISED THE PRICE 17 TIMES.
BRESCH: WE'VE PUT HUNDREDS OF MILLIONS OF DOLLARS BEHIND IT. YOU CAN'T PASS LEGISLATION. YOU CAN'T ENHANCE FORMULATIONS. WE ARE CONTINUING TO INVEST, TO RAISE AWARENESS THAT PEOPLE ARE FULLY AWARE OF THE RAMIFICATIONS OF NOT HAVING ACCESS TO AN EPIPEN. WE HAVE WORKED ACROSS THE SPECTRUM FROM R&D TO EDUCATION TO AWARENESS TO ENSURE THAT THAT HAPPENS. WHEN WE TOOK OVER THIS PRODUCT, THEY WEREN'T SPENDING A DOLLAR ON IT. AND IF YOU READ ABOUT THE EVENTS THAT WERE HAPPENING IN SCHOOLS AND IN RESTAURANTS, IT'S NOT TO SAY – WE WANT TO CONTINUE THAT THERE'S NEVER A LIFE LOST BECAUSE THEY DIDN'T HAVE ACCESS TO AN EPIPEN.
SULLIVAN: IS MYLAN A GREEDY COMPANY? YOU'VE BEEN LABELED GREEDY.
BRESCH: LISTEN. WE HAVE FOR OVER 50 YEARS FOUGHT FOR AFFORDABLE ACCESS TO MEDICINE. WE HAVE FOUGHT TO RAISE THE QUALITY STANDARDS. WE HAVE FOUGHT TO MAKE IT A LEVEL PLAYING FIELD THAT FOR THE PRODUCTS THAT EVERYBODY IS TAKING HERE IN THE UNITED STATES IS – MEETS THE SAME QUALITY STANDARD. WE HAVE FOUGHT NIGHT AND DAY TO BRING PRODUCTS TO THIS COUNTRY – OR INTO THE MARKET PLACE AT AFFORDABLE PRICES. YOU SEE BIOLOGICS. OUR INVESTMENTS TO BRING BIOLOGICS INTO THE MARKET PLACE. THESE ARE DRUGS THAT COST HUNDREDS OF THOUSANDS OF DOLLARS A YEAR. SO WHILE I KNOW THAT EPIPEN IS TOUCHING THE HOMES OF FAMILIES OUT THERE, WHICH IS WHY WE ARE DOING EVERYTHING WE CAN IMMEDIATELY TO ENSURE NOBODY GOES WITHOUT AN EPIPEN. THE FIGHT ON THE $300 BILLION PHARMACEUTICAL MARKET IS REAL AND WE NEED TO FIX IT. BECAUSE THIS COUNTRY – IT'S NOT SUSTAINABLE, WHAT'S HAPPENING TODAY.
SULLIVAN: GIVEN THE FIRE STORM, HEATHER, AROUND THIS, ARE THE PRICE HIKES FOR MYLAN DONE?
BRESCH: LOOK, WE'RE GOING TO CONTINUE TO RUN A BUSINESS. AND WE'RE GOING TO CONTINUE TO MEET THE SUPPLY AND DEMAND OF WHAT'S OUT THERE. I CAN TELL YOU, I DON'T THINK ANYONE SHOULD SAY STATUS QUO OR BUSINESS AS USUAL. THIS IS A DYNAMIC, DYNAMIC INDUSTRY. AND OUR SYSTEM NEEDS TO BE DYNAMIC TO EVOLVE AND TRANSFORM THIS HEALTH CARE SYSTEM.
SULLIVAN: SO YOU WANT TO BUST THIS SYSTEM. ARE YOU READY TO TAKE ON CONGRESS?
BRESCH: I AM ABSOLUTELY READY TO WORK WITH CONGRESS TO MAKE IT HAPPEN. NOT HAVE A PR SOUND BITE.
SULLIVAN: THE NEW YORK TIMES SORT OF INTIMATED THIS MORNING IN THEIR OP-ED THAT CONGRESS YELLS A LOT BUT DOES NOTHING.
BRESCH: I COULDN'T AGREE MORE. SO I AM LOOKING FORWARD TO SITTING DOWN –
SULLIVAN: BECAUSE THE LOBBYING. AND YOU GUYS LOBBY, TOO. YOU LOBBY. IS CONGRESS TOO CLOSE TO THE BIOTECH AND PHARMA INDUSTRY?
BRESCH: I THINK WE NEED LEADERSHIP IN THIS COUNTRY TO MAKE THE TOUGH CHANGES. THIS ISN'T EASY. IF IT WAS EASY, WE WOULDN'T BE SITTING HERE. IT'S A COMPLICATED SYSTEM AND TO GET IN AND UNDERSTAND, IT TAKES TIME. WHICH, AS YOU KNOW, MANY PEOPLE DON'T HAVE THE TIME TO TAKE THE TIME. OUR CONGRESS, OUR LEADERS IN THIS COUNTRY, NEED TO GET AROUND THE TABLE AND FIX THIS.
SULLIVAN: WE KNOW IT'S BEEN A TOUGH WEEK FOR MYLAN, FOR YOU, FOR EPIPEN PARENTS, MOST OF ALL. BUT WE APPRECIATE THE TIME YOU'VE TAKEN TO COME IN TO SPEAK TO US HERE ON CNBC ON THIS IMPORTANT TOPIC.
BRESCH: NO, LOOK, AND I APPRECIATE YOU GUYS COVERING AND LISTENING TO THIS SIDE OF THE STORY AND MOST IMPORTANTLY, MAKING SURE THAT FAMILIES OUT THERE KNOW, THAT THEY HAVE ACCESS TO EPIPEN AND EVERYONE WHO NEEDS IT WILL GET ONE.
SULLIVAN: OK. WELL, I DO KNOW THE STORY IS NOT DONE. SO HOPEFULLY WE'LL SPEAK AGAIN. HEATHER BRESCH, THANK YOU VERY MUCH. CEO OF MYLAN LABS, FOR JOINING US FIRST ON CNBC.
BRESCH: THANK YOU.
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