WHEN: Today, Tuesday, January 10th
WHERE: CNBC's "Closing Bell"
Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Mylan CEO Heather Bresch on CNBC's "Closing Bell" (M-F, 3PM-5PM ET) today, Tuesday, January 10th.
All references must be sourced to CNBC.
KELLY EVANS: DONALD TRUMP ALSO VOWING TO LOWER DRUG PRICES AS PRESIDENT. JOINING US NOW FROM JPMORGAN HEALTH CARE CONFERENCE OUT IN SAN FRANCISCO IS OUR MEG TERRELL ONCE AGAIN WHO IS NOW JOINED IN A CNBC EXCLUSIVE BY MYLAN CEO HEATHER BRESCH.
MEG TIRRELL: KELLY THANK YOU SO MUCH AND HEATHER THANK YOU FOR JOINING US.
HEATHER BRESCH: THANK YOU.
TIRRELL: SO YOU GUYS MAKE THE EPIPEN, OF COURSE. THIS IS ONE OF THE BIGGEST STORIES IN THE DRUG INDUSTRY THIS YEAR. HOW WOULD YOU REFLECT ON WHAT 2016 MEANT FOR MYLAN?
BRESCH: YOU KNOW, I GUESS AS I REFLECT I WOULD SAY LOOKING BACK I THINK EPIPEN STARTED A VERY, VERY IMPORTANT AND MUCH NEEDED CONVERSATION IN THE HEALTH CARE SPACE. I THINK GIVEN THE COVERAGE OVER THE LAST SIX, EIGHT MONTHS OF JUST HOW IT WORKS AND STARTING TO DIVE INTO THESE ISSUES THAT I THINK ARE, AGAIN, VERY NEEDED FOR US TO GET TO A MEANINGFUL ANSWER AND SOLUTION.
TIRRELL: ONE OF THE THINGS THAT YOU REALLY I THINK BROUGHT UP AS PART OF THIS CONVERSATION IS REALLY THE ROLE THROUGHOUT THE SYSTEM OF DRUG PRICES AND PARTICULARLY OF THE MIDDLEMEN. WE HAD EXPRESS SCRIPTS THE LARGEST PHARMACY BENEFITS MANAGER ON EARLIER AND WE ASKED THEM, DO THEY PLAY A ROLE IN INCREASING OR INCENTIVIZING RAISING LISTPRICES AND THEY SAID NO. HOW DO YOU RESPOND TO THAT?
BRESCH: YOU KNOW, AGAIN, I'LL JUST SPEAK FROM WHAT I KNOW, WHICH IS THE EPIPEN EXAMPLE THAT I SHARED, AND, YOU KNOW, WHEN YOU LOOK AT A SYSTEM WHERE AS THE MANUFACTURER, AS THE SELLER, AS THE PERSON, AS YOU SAID, WHO IS OWNING EPIPEN AND WE MAKE LESS THAN HALF OF THAT LIST PRICE, I THINK THAT DEMONSTRATES AN IMBALANCE IN THE SYSTEM. SO IT WASN'T -- IT WAS JUST REALLY ABOUT EXPOSING SOMETHING THAT MUCH TO MY SURPRISE, EVEN PEOPLE WITHIN THE HEALTH CARESPACE OR PEOPLE WHO HAVE COVERED THIS ISSUE FOR A LONG TIME WERE SHOCKED AND HAD NO IDEA OFREALLY HOW IT WORKS. AND I THINK THAT'S WHAT OBVIOUSLY STARTED A MUCH-NEEDED CONVERSATION.
TIRRELL: A LOT OF PEOPLE HAVEN'T BEEN HAVING THAT CONVERSATION MAYBE BECAUSE PBMS HAVE A LOT OF POWER WHERE THEY PLACE DRUGS ON FORMULARY PROGRAMS FOR PATIENTS TO BE ABLE TO ACCESS THEM. HOW HAS THIS WHOLE CONVERSATION AND REALLY BRINGING THE PBMs INTO THE LIMELIGHT AFFECTED YOUR RELATIONSHIP WITH THEM? HAS IT AFFECTED YOUR RELATIONSHIP WITH DOING BUSINESS WITH EXPRESS SCRIPTS, CVS, ETC?
BRESCH: WE HAVE A GREAT RELATIONSHIP WITH OUR CUSTOMERS. AND AS YOU KNOW MYLAN IS MUCH MORE THAN EPIPEN. EPIPEN IS A VERY IMPORTANT PRODUCT BUT IT'S DOWN IN MID SINGLE DIGITS WHAT IT MEANS TO OUR REVENUE. WHEN YOU LOOK AT MYLAN'S PORTFOLIO, WE HAVE OVER 630 PRODUCTS JUST IN THE UNITED STATES, OVER 2700 GLOBALLY. YOU LOOK AT THE SIGNIFICANCE -- THE SIGNIFICANT ROLE WE PLAY INTHE U.S. HEALTH CARE SYSTEM, YOU KNOW, WE'RE AN IMPORTANT PLAYER SO WE HAVE GREAT RELATIONS. AND IT'S ABOUT OUR WHOLE PRODUCT PORTFOLIO. OUR AVERAGE SALES PRICE IS 25 CENTS A DOSE. LAST YEAR WE FILLED 1 IN EVERY 13 PRESCRIPTIONS IS A MYLAN MEDICINE. 21 BILLION DOSES THAT'S MORE THAN PFIZER, J. AND J., MERCK. SANOFI, ASTRA ALL COMBINED AND I THINK WHEN PEOPLE REALLY UNDERSTAND OUR SCALE, OUR DIVERSIFICATION, OUR DIFFERENTIATION AS A COMPANY, IT PUTS MYLAN IN A UNIQUE ROLE FOR OUR CUSTOMERS FOR OUR PATIENTS AND MOST IMPORTANTLY TO THIS HEALTHCARE SYSTEM.
TIRRELL: SO YOU DO HAVE A VERY BIG AND DIVERSE BUSINESS, BUT THE EPIPEN STORY REALLY DRIVING AND PROBABLY COMMANDING A LOT OF YOUR ATTENTION OVER THE LAST YEAR. AS A RESULT OF THAT ENTIRE SITUATION, IS THERE ANYTHING YOU'VE CHANGED ABOUT HOW YOU DO BUSINESS?
BRESCH: YES. YOU KNOW, LOOK, I THINK EVERY DAY IS A LEARNING, ESPECIALLY IN THIS INDUSTRY. AND THE DRAMATIC SHIFT IN THE WAY HEALTH CARE PLANS ARE DELIVERING HEALTH CARE TO PATIENTS HAS PUT A PATIENT LENS THAT REALLY NEVER EXISTED FROM THAT PHARMACY COUNTER INTERACTION. SO, IT ABSOLUTELY HAS MADE MYLAN A STRONGER COMPANY, ME A STRONGER LEADER BECAUSE I'M STEPPING BACK AND LOOKING THROUGH THE LENS OF THIS DRAMATIC SHIFT AND REALIZING THAT WE REALLY OVERNIGHT, AND I BELIEVE AN UNINTENDED CONSEQUENCE, OF HAVING – CONSUMERIZING HEALTH CARE AND ASKING, YOU KNOW, AND A LOT OF TIMES, THE CEO OF A HOUSEHOLD IS A MOTHER. SHE'S TAKING CARE OF THAT HOUSEHOLD. SHE'S IN CHARGE OF HOW HEALTH CARE DOLLARS GET SPENT. I TRULY UNDERSTAND THE OUTRAGE WHEN YOU HAVE NO IDEA WHAT SOMETHING IS GOING TO COST. SO AS I STEP BACK AND TRY TO LOOK AT EVERYTHING THROUGH AN EMPLOYER AND THROUGH THIS PATIENT LENS, IT GIVES A DIFFERENT PERSPECTIVE. AND WE'RE CONTINUING TO APPLY THOSE LEARNINGS AND MOST IMPORTANTLY, IF EPIPEN STARTED THIS CONVERSATION, I WILL AT LEAST DO EVERYTHING IN MY POWER TO SEE IT THROUGH. AND SEEING IT THROUGH MEANS CHANGING THE WAY THAT PHARMACEUTICAL PRICING AND THE WAY A PATIENT – THROUGH THAT PATIENT LENS NEEDS TO CHANGE DRAMATICALLY.
TIRRELL: WELL, YOU MENTIONED THAT OUTRAGE, OF COURSE. AND THIS REALLY HAS BEEN EMBRACED AS A POPULIST ISSUE FROM REALLY BOTH SIDES OF THE POLITICAL AISLE. AND MOST RECENTLY BY PRESIDENT-ELECT DONALD TRUMP, WHO SAID HE DOESN'T LIKE WHAT'S HAPPENED WITH DRUG PRICES, HE IS GOING TO BRING THEM DOWN. AND WHAT DO YOU ANTICIPATE THAT WHAT MEANS? WHAT WILL THAT IMPACT BE ON YOU?
BRESCH: LOOK, I'M EXTREMELY OPTIMISTIC. I BELIEVE THAT OBVIOUSLY HE IS A VERY BUSINESS-MINDED INDIVIDUAL THAT'S VERY SOLUTION ORIENTED. AND WHEN YOU LOOK AT HOW THE SYSTEM WORKS TODAY, YOU CAN'T HELP BUT THINK IT'S JUST – IT'S NOT RATIONAL. WE DON'T HAVE A MARKET-BASED SYSTEM FOR BRAND PHARMACEUTICALS AND WE HAVE A REBATE BASED SYSTEM. I'M NOT SAYING ONE IS RIGHT OR WRONG, BUT THEY ARE PHILOSOPHICALLY VERY DIFFERENT. PEOPLE IN THE UNITED STATES ARE ANGRY AND THEY DON'T KNOW WHO TO BE ANGRY OVER ABOUT MAKING VERY PERSONAL AND EMOTIONAL DECISIONS ABOUT PRODUCTS THEY NEED OR THEIR CHILDREN NEED. SO IF WE'RE GOING TO PUT THEM AT THAT FRONT LINE BECAUSE DEDUCTIBLES ARE 8, $10,000 OF WHAT NEEDS – YOU LOOK LIKE AN UNINSURED PATIENT UNTIL YOU HIT THAT DEDUCTIBLE. SO IF WE'RE ASKING THEM TO GET ENGAGED, THEN WE NEED TO GIVE THEM THE TOOLS AND THE TRANSPARENCIES TO ALLOW THEM TO SHOP. I SAY THAT PEOPLE IN OUR COUNTRY ARE THE BEST SHOPPERS IN THE WORLD. WE EXPECT THE HIGHEST QUALITY AND THE LOWEST COST. YOU LOOK AT THINGS LIKE PLASTIC SURGERY, YOU'RE ENGAGED AND YOU'RE SHOPPING AND THAT HAS HAPPENED THERE. WHEN YOU LOOK AT YOUR – YOU DON'T HAVE THOSE TOOLS. YOU CAN'T SHOP, YOU CAN'T COMPARE. SO THAT LACK OF TRANSPARENCY, THAT LACK OF ENGAGING, YOU KNOW, THOSE CEOs OF HOUSEHOLDS, EVERY MOTHER OUT THERE THAT'S THINKING ABOUT HOW TO AFFORD AND PAY FOR, NEEDS THE TOOLS AND TRANSPARENCIES TO KNOW HOW TO SHOP.
TIRRELL: WELL, THIS IS OBVIOUSLY A VERY COMPLICATED AND NUANCED SITUATION, BUT WE'VE SEEN THE PRESIDENT-ELECT USE A VERY BLUNT TOOL IN ADDRESSING A LOT OF THINGS HE SEES IMPORTANT, WHICH ARE TWEETS.
BRESCH: YEAH.
TIRRELL: ARE YOU CONCERNED AT ALL ABOUT BEING THE TARGET OF A TRUMP TWEET?
BRESCH: WELL LOOK, I CAN'T SPEAK TO HIS TWEETS, BUT WHAT I CAN SPEAK TO IS WE TOOK A VERY DECISIVE ACTION ON EPIPEN. AND HE APPEARS TO ME TO BE SOMEONE WHO APPRECIATES VERY DECISIVE AND IMMEDIATE ACTION. SO, YOU KNOW, I WOULD HOPE THAT THAT IS HOW HE WOULD LOOK AT THIS EPIPEN – WHAT THE EPIPEN SITUATION WAS AND THE CONVERSATION IT STARTED.
TIRRELL: HEATHER BRESCH, WE REALLY APPRECIATE YOU JOINING US.
BRESCH: YEAH, THANK YOU.
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