State Attorney General Eric Schneiderman has launched an antitrust investigation into Mylan Pharmaceuticals - the maker of EpiPen.
He says if Mylan engaged in anti-competitive business practices or violated antitrust laws with the intent of limiting lower cost competition, they will be held accountable.
The EpiPen is filled with epinephrine, and is used in emergencies to treat severe allergic reactions to insect bites and foods like nuts that can lead to anaphylactic shock.
According to the attorney general's preliminary review of Mylan's sales contract with a local school system, its terms may have included "potentially anticompetitive terms". Allergy sufferers have enough concerns to worry about-the availability of life-saving medical treatment should not be one of them.
Maylan responded to outrage by offering a cheaper, generic version of the drug and promising to make EpiPen more affordable.
The manufacturer has supplied more than 700,000 Epi-Pen auto-injectors to more than 65,000 schools since 2012.
The company has defended EpiPen's high price, saying it spent hundreds of millions of dollars to improve the product.
Mylan is the latest in a string of pharmaceutical companies to draw scrutiny over steep price increases, with drug executive Martin Shkreli and representatives from Valeant Pharmaceuticals International Inc. called before Congress this year. But it did issue a statement that its program to distribute EpiPens in schools "continues to adhere to all applicable laws and regulations".
The drugmaker previously offered to sell schools additional injectors beyond those provided for free under the program, but that "such restriction no longer remains", the Mylan spokeswoman said. Mylan did not immediately return a request for comment.
In response to pressure from US lawmakers, Mylan said last month that it would expand discount programs and launch a generic version of EpiPen for $300.
He said Cincinnati mother, Linda Bates, said she paid roughly $50 in 2015 for her son's EpiPen.
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