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NEW YORK (TheStreet) -- Mylan (MYL) - Get Free Report  said it will launch a generic alternative to its EpiPen for $300 per two-pack, representing a 50% discount to the branded treatment's current price. 

The drugmaker was harshly criticized last week for hiking the price of its severe-allergy treatment to $600 from about $100 in 2009 as Mylan CEO Heather Bresch's salary rose 671% between 2007 and 2015. 

Mylan was able to raise the price of its branded EpiPen by so much in part because of a lack of competition, TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" show this morning. 

In the past, drug companies like Mylan would issue a medication and rivals such as Teva (TEVA) would immediately launch a competitor, Cramer noted.

"You raise prices in part because you think you can get away with it, which is the capitalist system, but also because you expect another drug is about to come in," he said. "There's some vigor. You try to make extra money before the generic comes in."

But because margins are so low, generic companies are now targeting specific drugs and consequently preventing competition, he added.

"Mylan raised [the price] because the system doesn't have a cop, so to speak," Cramer added in the above video. 

He mentioned that this is what happens with a monopoly. 

Shares of Mylan were up in early-afternoon trading on Monday.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Mylan's strengths such as its revenue growth, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: MYL

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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