Fwa the ceo addressing the epipen controversy. Tiffany beats estimates but struggling with a drop in tourism and the dollar store is under pressure, continued weak Earnings Guidance for the year. But first up, mylan taking action in response to criticism of that epipen pricing. The Company Announcing it will cover up to 300 of the allergy drugs outofpocket costs at pharmacy, reducing a patients cost exposure by 50 . Also doubling eligibility for patient assistance, eliminating outofpocket costs for both uninsured and under insured patients. Moments ago on squawk, Heather Bresch was asked why mylan didnt lower the list price on the drug. Heres her response. Had we reduced the list price, i couldnt ensure that everyone who needs an epipen gets one. So went around the system. This savings card is equivalent to cash, 300. Effectively were cutting the price in half, but were letting you take control of that. Were letting the patient take control of that. We enhanced the we enhanced already existing programs. These programs existed but this phenomenon, which is new, and literally has happened overnight, people dont understand their coverage and how could they, it is complicated. It is complicated, jim. She importantly is linking pricing to universality availability of the product. Well its a key part of her argument. Another way to put it if you can get away with jacking things up and gouging it, then you got to do it because the shareholders want it. And as someone whos well off enough to have one and you dont need two, you need a store hold of them, so its still 300 whatever, where you can get away with it. Theres no competition. Supposed to be competition. I have the competitor with me. The one that the fda doesnt like. But i have to tell you that i think that one of the things that weve seen over and over again with generics is that if theres only one Company Making something, this is basically about to be generic because of the other guys they can take it up as much as they want. Is this was this outrageous . No. Its par for the course. What they do. They just got nailed. You think valeant is sitting there saying hey, you know what, wow, im glad we didnt raise prices. Im glad we werent interviewed by Brian Sullivan. Wow. Lets sit down. Joe papa sit down with brian and how many did you raise. Whatever you can get await in the system you do. Is our country a better place . Absolutely. But our country allows this when you have one product. A lot of Generic Companies stop making certain products. They just stop doing it. And then boom, you know. Take them up. Yeah. Times this morning dissects that timeline of when teva was coming. Wasnt that good. And they regained this monopoly, the argument being they tried to make the Getting Better while the get was good. I tell you, like i dont want to present my whole pharmacy, my whole medicine chest, but i have i have a injectable situation, another drug, that because some other Companies Dropped out, its about it costs about 350 to make and they charge me about 500. And its not talked about because, you know, the insurance wont cover it but its just it was the same thing. There was a bunch of Companies Making it, everybody jumped out, a delivery system, made by one of these companies im not going to mention it and, you know, i its its about 70,000 a year. Thats a lot of money. Yeah. Now i manage to go through some website and get it. Im not going to go into specifics other than to say the only reason i can afford this is i happen to be very lucky to have a decent paying job. Is the solution here to start improving drugs faster . How do you avoid approving drugs willynilly. Look, i dont know. The one, look is this one this is the one they pulled. Okay. This is the abuq. My doctor said its fine. Okay. This was a great competitor. This is tevas product. The other guys product that was pulled for allergic responses. Im glad i have it and i carry i have five of them. There is one everywhere. Do i know when im going to im not presenting myself again as like these kids, okay, because i have great medical care. I am i am lucky to have all these. Unbelievable company that pays for this stuff. A lot of people fall through the cracks and this little thing is a lot of money. Okay. Just a lot of money. Im blessed to be able to afford it. I listen to these tragedies, this tragic situation. Look, you dont know when youre going to need it. And you dont need two. So i see mylan up in the premarket. Well think her defense was satisfactory to the shareholders . Until the real Donald Trump Tweets and says she should give it away and then Hillary Clinton tweets that i was unsatisfied, i listed on to Brian Sullivan, thats what she should do because it was a great interview, and shes got to take it down why shouldnt she lower prices. We should roll back value valeant, roll back these. I mean, im waiting for that. Look, i fda decides to pull this is two bottle thing. Fda decides to do it and the other drug i take, i can show you that one, you wouldnt believe it is if you made your own compound if you went to a compounding pharmacist, its 0. 001 of the price. I went up the food chain to my Health Insurer and they told me basically take a hike. Yeah. Yeah. It was actually im not mentioning names other than to say this is the system. And if you knew how little it cost to make the injectable thing that im talking about, you would be like, are you kidding me. And i have gone all over the country with every website around the world, some guy that makes it in north dakota, and i managed to save so its only 1,000. As bill george said yesterday this is not like gilead coming in with hep c. These tend to be very lowgrade technology. Is. Right. Its true, yes, im sure that mylan has done some things to do it. But i would say its emblematic. Epipen is so visible. There are hundreds of drugs like this. Right. People should know that. Cbs news, my doctor, has done endless stuff on this, used to be he happens to be my doctor. One advantage you might argue, to bresch is that shes a mother herself. She referenced that several times in her interview with brian. Well look, shes part of the system. The system allows it. I mean, the insurers allow it. Everybody allows it because they can get away with it. Other countries cant get away with it. Our country you can and our country its a shame, that our country is the supporter of these. Wasnt it Crystal Clear what she was asking congress to do, other than no. Address this no. It wasnt. And at one point she was talking about about being as outraged as everybody else. The people who have to buy these are like saying to themselves, i dont know, i think shes a little less outraged than i am. I think she can afford it too. Look theres a lot of people that dont make a lot of money in this country and dont have Health Insurers. We live in a world where theres have and have nots on this stuff. What is this, like 10 bucks. If its not covered, if its not covered youre history wiped out. One of the drugs, wiped most people out in this country look at the marginal, what people make. Wipe them out. Its not right. A few moments ago what you want to hear from some of the ben fit managers, right. They shouldnt be this should be a question for without competition you need to pit, you need to be able to pit two companies against or three companies or five companies and look, i just wish that someone that there was another guy on the market. You know, there was a series of articles about guys making something that could rival the epipen and im not im not an expert. I looked into it because of the process of getting something. You know, its personal experience. I dont like to inject my personal story. Im not again, i am so conscious of the fact that there are i got the money to do it. Sure. One more listen here, different bite from bresch talking to Brian Sullivan about mylan and her level of frustration regarding the episode. My frustration is theres a list price of 608. There is a system, there are i laid out that there are four or five hands that the product touches and companies that it goes through before it ever gets to that patient at the counter. No one everybody should be frustra frustrated. I am hoping this is an Inflection Point for this country. Our health care is in a crisis. No different than the Mortgage Financial crisis in 2007. That was interesting. Using the word bubble tying it to a mortgage crisis. Look its a capitalist system. I mean it is a capitalist system you need competition to lower price and we give whats interesting i have a lot of guys who do orphan drugs, and youll hear a price of a drug is 400,000 but United Health would have to pay 500,000 for the care. Its actually a bargain. Its a relative bargain. Health care costs a lot of money. Good Health Care Costs a fortune. We have the best in the world. We do. I mean, but yeah, mortgage bubble. I dont know. I mean, again, when we can be euphemistic. Instead of saying they get away with what they can, its aggressively priced. If its life saving its not like i can go to walmart and say listen, target has it at 7, you know, its not like you can go to amazon saying i can get prime, prime, these are not things that you just go to amazon prime. Theyre not shoes. We reached out to the centers senators and Congress People she mentioned in the interview. Yeah. What do they think . Well see if they get back to us. But clearly the episode is far from over. Got nailed on this one. Didnt they. And microcosm for larger theres guys right now in this business saying, thank heavens for her because i have to tell you maybe she sopped it up. If mrs. Clinton comes back and says i have a known list of 57 drugs that did this, you know, youre going to see a lot of activity. Yeah. When we come back this morning, big movers in retail that we havent gotten to yet. Tiffany Dollar General, dollar tree, interview with robert kaplan. You will want to hear him ahead of tomorrows jackson hole speech by fed chair yellen. 14 sessions the s p has moved within a 25point range. The narrowest band over this long a time period in about 20 years. Were back in a minute. Presidet of the north face, we are working on the prototype to match customers to gear. Watson, lets give it a try. Say its midjune and im backpacking in yosemite. Of our 353 jackets, i can recommend nine. Watson, what if it rains . There is just a 3 chance of rain, so i recommend the breathable stretch fleece fuse form dolomiti jacket. A Perfect Choice watson. No wonder our Customer Loyalty numbers keep climbing. I believe we can do even better. I like the way you think. I believe we can do even better. Ein streetlegal form. G lexus performance get great offers at the lexus golden opportunity sales event. Get up to 5,000 customer cash on select 2016 models. Ends september 5th. See your lexus dealer. Hole,. Tiffanys up in the premarket. The luxury retailer posting a better than expected quarterly profit helped by price increases and lower costs. Comps down a seventh quarter down 8 , largely being called a low quality beat because so much of this was sgna. They didnt guide down. Im used to them guiding down. I said wheres the guide down. I went through. Said not that paragraph. Where is the one about how were going to do poorly in the future. No. And then you get analysis, maintains its outlook. Oh, my god, tiffany and they didnt cut. May have been the tennis bracelet i bought for my daughters graduation. This was a relative for tiffany a good quarter. The 57, that ive made the 57 variety that thats just 57 varieties of heinz. I got it from [ inaudible ]. America down nine, looking for six. Europe down. Your point no change to the guide, not tiffany like. Its a win. If they cut costs they bought stock. Weve seen this throughout this retail period. Is the guys doing really bad, when they came out and said listen were done doing really bad, their stocks flew. Think about kohls, macys nordstrom. Nordstrom their release was like we thought we were like awful, but it turns out were just awful. When you stop hitting your head with a hammer, its better. And then a burlington, which was just much better than expected and you can still fly. Dollar general and dollar tree, we will talk about that, they basically fell the dollar tree and its dollar like sergeant. Theyve been strong. Both falling sharply today. Weaker than expected comps. They got negatives. Doug mcmillon is up ending the retail world, doug mcmillon. Walmart is driving everyday low prices like in the old days when they put out of business a lot of companies. Dollar general, in line, and again, reiterating fullyear guidance in the 10 to 15 range. I thought that was interesting given the fact of how really kind of subpar it was. You know, go over these, talk about samestore sales of plus 7. I was looking for plus 2. 6. And then they this was one i loved this. Im not making it up. These are good merchants. Im a dollar tree got, got the five readers i had on twitter last time. Unseasonably mild spring weather. Okay. What, does that mean you boughts less. You didnt go back to the freezer or something. No one else cited unseasonably mild spring weather of the companies i deal with. Thats a i mean even unseasonable. I thought that was curious. Raised eyebrows. Somebody said at walmart, the ghost of sam walton must be going up and down the aisles saying they picked the right guy. Do you agree . Oh, did they ever. I mean, raises prices for the workers so they dont go across the street to another store. And it also created a kind of an environment where i dont know, be i like to go to every single store. If faber were here he would be making fun of me. Walmart, theyre livelier. They kept the employees for once. And yeah, he is the right guy. Hes taking no princers. He changed english photo shop that wasnt doing that well. They have made it so that you are very conscious that theyve cut prices. Theyre and they jet. Com, i am sure that thats going to be algorithmically a challenge for amazon. Real challenge. Im very impressed with mcmillon. You know, hes kind of used this term, boyish. Probably heard that forever. Boyish since he was a boy. Probably will for years. I would like to be boyish. And meantime we continue to watch this earthquake yesterday in italy. The death toll continues to rise. Nbcs lucy kavanov is there. Good morning once again, lucy. Good morning, guys. Its been quite hectic especially in the hours since weve spoken. Just moments ago we experienced a powerful aftershake and earthquake aftershock pardon me, 4. 3 magnitude. We were in the street, the ground shook the buildings rattled. There is a construction site where a hotel had collapsed and rescue workers had been for hours now overnight searching for anyone who might still be trapped in that rubble. Down the road from me, we saw a massive plume of smoke and dust in the aftermath of that aftershock. Several ambulances had come down to the scene but were not hearing any reports of casualties from that specific incident. But rescue workers are racing against the clock, time is running out, but one thing they keep reminds us, the fact that back in 2009, when that deadly laguila earthquake took place in a similar region more than 300 killed there, they were still able to pull one person out from the rubble who survived for 7 hours. They are still 72 hours. They are still optimistic despite the fact that time is running out. Questions remain about the italian governments responsibility in terms of reinforcing the buildings here. This area is on a fault line. It lies between two tectonic plates prone to earthquakes and one of the reasons why the devastation here was so sig can nant you have ancient stone buildings sometimes date back to roman and Medieval Times have not been reinforced and folks will be asking whether more should have been done to reinforce the buildings here which have been effectively flattened and what to do about the remaining towns that are still standing. Guys . Lucy, thats going to be a much longer term story. Thanks to you, lucy this morning. That was went from being 37 any life is bad, 37 to a dramatic number. People dont know whos there. Thats my daughter was visiting that area three weeks ago. It was a very its an area that everybody goes to. Yeah. At a time where a lot of vacations and honeymoons. Thats what was going on. When we come back ralph nader will join us live with reaction to mylans move regarding the price of the epipen. But first well get cramers mad dash ahead of the opening bell and a look at the premarket which remains in the red. Back after a break. Using 60,000 points from my chase ink card i bought all the framework. Wire. And plants needed to give my shop. A face. No one will forget. See what the power of points can do for your business. Learn more at chase. Com ink lets get cramers mad dash watching sears as you say reaching that their bag of trix. Talking about monetizing kenmore, diehard, craftsman. Why is that . Because theres closing stores, the really, really, really bad stores, sears, minus 7 comps, 3. 3 for kmart, accepting 300 million loan from Eddie Lampert who runs the company. They always sound like theyre doing so well. Its kind of like the common term. Like wow, were killing it. And i do want to point out that there is something Jc Penney Marvin Ellison said on the recent Conference Call one of the reasons we are in the appliance business the first place because we observed a potential opportunity. Sears. Jc penney on its call says that sears is a good reason to buy jc penney. Hes right. Yeah. Pointed out this morning, comps have never been positive. No. With lampert as ceo. No. To what degree do they care about the Retail Operations . People will say its going to go down. Theres its a little tesla like. Not the car. Just the stock. In the sense that people who are in sears like Eddie Lampert some of the institutions dont let it come down, theyre buying. The tricks never stop here. And that theres they talk about a variety of potential partners, get you in, kmart, diecle hard, craftsman, keeping the balls juggling to make the money f