For the second time in recent weeks, a small, privately held drug maker with a piece of the action in two hot markets is being scrutinized by lawmakers over its pricing.
In the latest episode, US Senator Chuck Grassley (R-Iowa) wants Kaleo to explain why it set a $4,500 list price for the Auvi-Q allergic reaction device that is competing with EpiPen. The move is actually part of a complicated pricing strategy that may appeal to some consumers, but not so much to insurers.
Kaleo is selling its device for $360 in cash to people without insurance. But the company will cover the cost entirely for those with high-deductible insurance plans or who have a household income less than $100,000 and also lack insurance.
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