Mylan Pharmaceutical Company, the producer of EpiPen, has recently caused an uproar in the medical community after news broke that they have increased the price of the drug administering device by over 400% since acquiring the brand in 2007. Mylan has blamed middlemen and suppliers for the price increase, yet industry insiders say the company pays no more than $30 for production of their product.
With no alternative products on the market for those who suffer from life-threatening allergic reactions, EpiPen is the only product available to them. While holding a monopoly in their market, Mylan is currently able to price their product at whatever they seem fit. At a price of just over $600, for two doses of epinephrine, Mylan is exploiting the situation they are in and taking advantage of their consumers. For anyone going through anaphylactic shock, an EpiPen may be their only chance of survival. Making your customers choose between their life and an expensive product not everyone can easily afford is unethical. In nearly all situations, consumers will be forced to buy this product solely on their will to live. Mylan knows that consumers will pay almost any amount for their product, and the price they have set proves that. It is unfortunate to see a company that designs products to help people when they need it the most be more worried about ludicrous profit margins than providing an affordable product to their consumers.
In this situation, some sort of government intervention needs to take place. Government intervention should take place when the outcome of the intervention will benefit society as opposed to a single corporation. If there is no intervention on the price of EpiPen’s, there will be people risking their lives everyday due to the unaffordable price. As someone who used to have an EpiPen at a younger age, I am frustrated to know that consumers are paying large amounts to prepare for the worst while Mylan obtains extremely large profit margins.
A big part of successful business’ is the relationship they have with their customers. Charging your customers $600 for a lifesaving product that costs only $30 to produce because you “can”, does not set that relationship in the right direction.
A graph of EpiPen prices since being acquired by Mylan. Image Source
Sources:
Ben Popken, “Industry Insiders Estimate EpiPen Costs No More Than $30“, NBC News, Sept.6th/2016
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