NEW YORK (TheStreet) -- Shares of Mylan (MYL) - Get Report were advancing in mid-morning trading on Thursday after the pharmaceutical company said it would reduce the out-of-pocket cost of its EpiPens, which treat severe allergies.
Mylan CEO Heather Bresch "is trying to do everything she can to make money for shareholders, but sometimes there should be more compromise," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.
"If you can get away with jacking things up and gauging it, then you have to do it because the shareholders want it," Cramer added, referring to pharmaceutical companies raising drug prices.
"Clearly the system is broken," Cramer stated.
Following backlash, Mylan said this morning it would reduce the patient cost of the EpiPen by using a savings card, which would cover up to $300 for the EpiPen 2-Pak.
"You don't need two, you need a store hold of them," Cramer noted, "You don't know when you're going to need it."
Cramer also mentioned that Mylan has very little competition. But he carries a similar version to the EpiPen.
"You can get away with it. There is no competition," Cramer added of the price hikes.
He said there should be more competition and someone should have a better "mousetrap."
"One of the things we've seen over and over again with generics is that if there's only one company making something...they can take it up as much as they want," Cramer explained.
"Was this outrageous? No. It's par for the course. It's what they do. They just got nailed," Cramer contended.
He also noted that there are a lot of people in the U.S. who do not make a lot of money.
"A lot of people don't have health insurance...If (a drug is) not covered, you're history. You're wiped out," Cramer said, "It's not right."
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on Mylan stock.
The company's strengths can be seen in multiple areas, 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.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, 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 articles's author.
You can view the full analysis from the report here: MYL