The Problem Of Drug Price Increase And Proves Mylan 's Concern For Society

1781 Words Oct 9th, 2016 8 Pages
It is estimated that there are currently 43 million Americans at risk of anaphylaxis, a life-threatening allergic reaction (“Mylan’s Commitment,” 2016). The majority of these people are in constant possession of an EpiPen, an auto-injector containing epinephrine used to reverse anaphylaxis (“Anaphylaxis,” 2016). However, in recent years the price of the EpiPen has increased substantially; a two-pack currently costs $609 (Pollack, 2016). Because Mylan commands around 85 percent of the epinephrine auto-injector market, almost all of those at risk have been affected (Herrick, 2016: 2). Concerns about drug price increases, like the EpiPen’s, have caused confusion in many people. Mylan has been criticized directly for EpiPen’s price increase; some people argue that it was done solely for the financial benefits of the executives without any consideration for those at risk. However, this is not the case, as there is evidence that both rationalizes EpiPen’s price increase and proves Mylan’s concern for society.
This paper intends to justify high pharmaceutical prices for a number of reasons: they give companies a chance to recoup substantial capital costs, they stimulate much needed research and development within the pharmaceutical industry, and they provide companies with the means to invest in programs that benefit society directly. Furthermore, this paper will explain how Mylan’s earnings from the EpiPen have reflected these points, mainly through innovation from research and…

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