Public That Erupted Over The Undeniably Epipens High Pricing Strategy (Case Study Sample)
The objective of this assignment is to give you the opportunity to critically analyze a current issue by applying your understanding of business concepts and to identify a specific business problem that needs managerial attention.source..
BUSINESS CASE ANALYSIS
Globally, there are many leading pharmaceutical companies. Mylan Inc. is indeed one of them. Its medications include brand names, generic, and over-the –counter products which are in different dosages and therapeutic groups, for instance, injectable which are difficult to manufacture, HIV/AIDS antiretroviral (ARV) treatments, transdermal patches, and tropical. The organization has innovative and technological research and development abilities and it is presented as one of the world's biggest Active Pharmaceuticals Ingredients (API) producers. The company applies one worldwide quality standard to the majority of its pharmaceuticals irrespective of their points of production. The company's vision is to be committed in establishing new standards in healthcare on a global scale. It cultivates the spirit of togetherness in the provision of high quality medicine to over seven billion people.
Mylan, who is an exclusive owner of the EpiPens enjoys a complete monopoly control over the medications that many Americans require to survive in the conditions of outrageous allergic reactions. However, in a free market economy, it implies that a company can charge its items as much as it wants. This is because the company has a captive consumer base who have no alternative but to purchase the products or risk their lives. In the recent past, the company has increased EpiPen's prices more than three and half times the original prices. This caused a public outcry with people questioning if the strategy was indeed reasonable. The study conducted by A Kaiser Family Foundation indicated that most of the Americans were unhappy with the overall pricing of the pharmaceutical products.
This case analyzes the controversy among the public that erupted over the undeniably EpiPens' high pricing strategy. Mylan Inc., (Mylan), who is a general drug maker, purchased the EpiPens product offering from Merck way back in 2007. Since then the organization invested a lot of resources into advertisements to raise the public awareness about the product of the drug, significantly increasing its prices from $100 to $600 for ever two packs in the United States. However, in 2016, consumers got extremely angry with the organization's decision of high pricing on the pharmaceutical products and the media firestorm followed. This case challenges the organizations to consider the role of being fair during pricing of their products. It was hard for Mylan to give a justified approach on how it had increased its prices. There was therefore no justification in the variations of EpiPen prices across different countries, as an EpiPen is valued at an equivalent of $85 in France. The case further challenges organizations on the best ways to handle controversies from the media as well as the general public.
What the CEO of Mylan, Heather Bresch Should Do
From the case study, it is justified that EpiPens, a product offered by Mylan Inc. is an essential product. Consumers buy the products despite its high prices. The decision of the company to increase the price beyond reasonable levels was unethical as the product in question was an essential product. There should therefore be no unjustified profits on products that are essential. The company should have treated patients then claim the payments later instead of people moving all the way to Canada to look for the same product. If, for example, a person suffers from heart and required an emergency therapy, the health care centers would in the first place treat before they collect a deposit just to
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