Mylan Pharmaceuticals: A Case Study

Mylan Pharmaceuticals has been in the spotlight lately, but not exactly in a positive way. The media and consumers have made it known that they don’t appreciate excessive price hikes in one of the many drugs Mylan produces. The EpiPen is designed for patients who have a severe allergic reaction to some substance or extreme cases of asthma attacks. Unfortunately for those that need the drug, prices have increased from $57 in 2007 to about $616 for a two-pack today—an increase of 1,080%. Just since 2013, price have risen from $249—that’s a 247% increase (USA Today). So why are these drug prices rising so quickly? Is there an ethical dilemma in play here that should be addressed, is this simply good business, or is there perhaps a legitimate reason for the dramatic price hikes? In this paper, I will be evaluating the pharmaceutical and insurance industries (specifically Mylan) to determine why prices have been increasing for …show more content…
Auvi-Q, an auto-injector epinephrine product now produced by Kaleo Pharmaceuticals (formerly produced by Sanofi) will be placed on the market sometime in 2017. They have yet to set a price, but most people believe they will only be a few dollars cheaper than the EpiPen (Arstechnica). It had previously been on the market but was taken off in 2015 over fears that the dosage was not correct in some units. Due to patent laws, a generic has yet to be developed, tested and sold until the patent expires in 2025 (NPR). It is not uncommon to see that drug prices elsewhere in the world are cheaper than the U.S. for various reasons. Some suggest Obamacare has driven those prices up as well, but I don’t believe it is Obamacare alone that causes a 247% increase since 2013. A similar version of the EpiPen is sold in France by another company for about $170 for a two-pack