NY attorney general probes EpiPen manufacturer

New York's attorney general says his office is investigating Mylan Pharmaceuticals, which has been criticized for steep price increases for its emergency allergy treatment EpiPen.

Attorney General Eric Schneiderman says Tuesday 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.

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