Mylan N.V. (NASDAQ:MYL) Biotech Stocks recorded a windfall in Thursday’s premarket trading after the No. 2 generic drug manufacturer recalled its 81,000 EpiPens in Europe, New Zealand, Australia and Japan as a result of device failure.
Mylan stock sank to 0.2% near 41.60on Thursday after closing up a fraction on the previous day. Since August last year, the stock has been creating a handle on a cup-with-handle scenario.
News concerning the recall broke out late Wednesday after it was reported that two EpiPens failed to work during emergencies. Patients in both cases used alternative EpiPen to offer the lifesaving allergy shot.
The two incidence of failing EpiPen come barely three months after the company launched the generic type of its branded allergy shot. Mylan came under sharp criticism due to the high price of the EpiPen two-pack which has gone up by 500% in the recent years selling at $600. Its generic version goes for half the price.
Mylan together with number one and top biotech stocks generic drugmaker Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) are some of the drugmakers that are under investigation for allegedly fixing prices. Mylan has also been criticized for wrongful classification of EpiPen as a generic product rather than a branded product.
EpiPens are auto-injectors used to automatically offer lifesaving epinephrine to people suffering from allergic reactions. The injector has a needle that shoots through the skin and directly delivers the epinephrine into the muscle when pressed into the thigh.
Mylan recently announced receiving a .S. Food and Drug Administration approval for the New Drug Application for TLE400 through the President’s Emergency Plan for AIDS Relief. TLE400 is an antiretroviral combination of several doses and is expected to be available in a number of developing countries for HIV/AIDS infected people.
The drug is made of a 400mg dose of Efavirenz, which is much lower than the 600mg standard dose. According to the ENCORE1 trial1 by Kirby Institute which used drugs from Gilead Sciences and Mylan, a reduced 400 mg Efavirenz dosage is not inferior to the 600mg dose if mixed with Emtricitabine and Tenofovir.