New York Attorney General Investigates EpiPen Manufacturer Amid Price Increase

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ALBANY, N.Y. (CBSMiami/AP) — Mylan Pharmaceuticals is under investigation amid criticism for its steep price increases of its emergency allergy shot - EpiPen.

New York's Attorney General Eric Schneiderman said Tuesday that a preliminary review shows the company "may have inserted potentially anticompetitive terms" into sales contracts with schools.

EpiPens are used in emergencies to treat severe allergic reactions to insect bites and foods like nuts that can lead to anaphylactic shock.

The price has grown to $608 for a two-pack, up more than 500 percent since 2007. The drugmaker says it will launch a generic version that will cost $300.

Canonsburg, Pennsylvania-based Mylan N.V. says more than 700,000 free EpiPens have been distributed to over 65,000 schools, and it has dropped a previous purchase restriction for schools that wanted more at discounts.

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