Epipen Case Summary

In period five, we introduced the line extension Allright; a 12-Hr muli-symptom relief capsule. We decided this extension would be successful, as the allergy market is very small and had an entrenched competitor. Therefore, while we were aware of potential cannibalization, we believed that the targeted market (retirees, empty nesters, and young singles) would have sufficient demand for our product. We also reasoned that this target was far enough removed from Allround’s to gain additional market share without taking any from Allround. However, this was not the case, as cannibalization was a pressing issue. Market share was gained at the expense of Allround.

Pharmaceutical companies are provided with temporary monopoly rights on the production of new drugs which result in a higher cost on consumers. If competing companies were allowed to produce generic forms of those drugs, consumers will be able to afford those medications even in cases where those consumers have no insurance coverage. The company responsible for developing and inventing the original medication could be offered incentives to invent in the future by either obtaining tax breaks or NIH funding for future research. They could even be offered a percentage of the sales of the generic drugs. Economist Gary S. Becker advocates dropping many FDA requirements that, in his opinion, provide no additional safety measures but rather delay the development of new drugs.[12] Betamethasone, for example, has been part of the standard prenatal care in Europe since the late 1970’s while it got adopted in the U.S. after 1997. On many occasions, the FDA ignores all scientific evidence concerning certain drugs because the manufacturer did not follow their mandated bureaucratic standards.

The current debate over the Mylan Company’s near monopoly of the epinephrine market through its EpiPen shows what can happen without monopoly regulation. While the cost to produce an Epipen is around $30, the price to the consumer is around $300 each. The economic implications for a family that needs to keep the device on hand to save a life can be excessively high, the emotional results of not having one when you need one are debilitating. This monopoly is further enhanced by state-enforced regulations requiring that schools keep EpiPens in stock and the, so-called, EpiPen law enacted in 2013, which leave little incentive for other pharmaceutical companies to develop their own technology for fast-acting emergency devices. (Bartolone, 2016) Breaking Mylan’s monopoly will not only lead to new product development but lower prices for consumers for a life-saving delivery

In 2015, the pharmaceutical industry spent over 27 billion dollars on advertising. The two greatest components of this effort were promotional advertising and free medication sampling, which the pharmaceuticals invested 15.5 and 5.7 billion dollars respectively (“Persuading the Prescribers”). Promotional advertising involves direct contact with health professionals, the most common being extravagant lunch conferences held for physicians and their staff. On the other hand, sampling involves distributing free sample of medications to physicians, who then have a choice of providing these samples to patients. As a result of these methods, the industry has seen revenue around $400 billion with 90% of physicians having a relationship with a drug company (Campbell 2007). Moreover, the prices of prescriptions continue to rise; a copay of a generic drug is $11.72, preferred brand drug is $36.37 and a specialty drug is $58.37 (Coleman and Geneson 2014). Although the profits are immense in the numbers demonstrated above, it is no surprise when pharmaceutical drug companies elevate their prices even more. For instance, recently Turing Pharmaceuticals raised the price of their medication Daraprim from $13.50 to $750. Keep in mind, this medication is used for threatening parasitic infections, aids, and cancer with alternative options currently found to be inefficient (Pollack 2015). Another example of this practice involves cycloserine, a drug used to

Lynas, K. (2010, November/December). Canadian pharmacists journal: Universal pharmacare could cut up to $10.7 billion from Canada’s annual drug bill. Notes, 143(6), 262. doi: 10.3821/1913-701X-143.6.262

The EpiPen device automatically injects a drug called epinephrine, which reverses potentially deadly allergic reactions. It is the only device of its kind available in the United States. Millions depend on carrying the device at all times. For decades the EpiPen was available at a low cost until the Mylan Company purchased it in 2007. Since then, the price has risen over 400% creating a public backlash of media reports, social media petitions, and politician’s calling out Mylan executives to explain the reason for the price raise. Lack of compassion and appearance of greed has tarnished the public image of the company. Mylan has begun looking for ways of rebuilding their image by releasing compensation to the public in the form of generic cheaper EpiPens and payment assistance to eligible patients, but it might be too little too late in this current ongoing communication crisis event.

Recently, there had been a controversy over the rise in pharmaceutical costs involving the EpiPen in the United States. The EpiPen, also known as adrenaline/epinephrine, is a widely used injection that is used to treat allergic reactions. This generic drug has been available for many years. The EpiPen controversy is a prime example of how monopoly

The rise in costs of prescription medicines affects all sectors of the health care industry, including private insurers, public programs, and patients. Spending on prescription drugs continues to be an important health care concern, particularly in light of rising pharmaceutical costs, the aging population, and increased use of costly specialty drugs. In recent history, increases in prescription drug costs have outpaced other categories of health care spending, rising rapidly throughout the latter half of the 1990s and early 2000s. (Kaiseredu.org, 2012).

There are often expenses that are not planned for, especially when it comes to healthcare. Recently, there has been a spike in the cost of a commonly-used device to treat many severe allergic reactions: The EpiPen. The EpiPen is an epinephrine auto-injector that is used to treat anaphylactic shock. Anaphylactic shock is “a severe, potentially life-threatening allergic reaction that occurs within seconds or minutes of exposure to an allergen” (Mayo). A pack of two EpiPens can cost around six-hundred dollars, while it only costs around fifteen dollars to create one. (Mangan) Since Mylan NV, the maker of EpiPens, “acquired the rights to the drug in 2007, it’s raised the per-dose list price from about $50 a shot to $304... The EpiPen now generates about $1 billion a year for Mylan” (). In addition, in 2013, the U.S. government “passed a law that gave funding preferences for asthma treatment grants to states that maintained an emergency supply of EpiPens” (NYTimes). The distribution of the product is definitively limited to those willing and able to pay a copious sum for a drug that might save one’s life. Therefore, a solution to this limitation must be made in order to produce more adequate healthcare.The Epipen distribution system can be fixed in a variety of ways that benefit either the consumer or the company, but still result in an increase in the number of people who can access the medicine, which is important for many reasons. The best solution to this situation would

During a interview with County Pharmacists Associations newly elected president, Lillian Shisehaunt, pharmacist, said there were a few concerns that needed to be made aware of. She began to speak the concerns about how older people are taking way too many medications at the same time. In this meeting, other pharmacist agreed to the statement stated as well.

The EpiPen is only one out of numerous lifesaving medications that pharmaceutical companies have increased the price to an amount that the average consumer cannot afford. As both a concerned constituent and a health care provider, I would never want people to have a lack of access to medications that could potentially save or improve their quality of life for any reason. It is now imperative that the government on all levels demand transparency in the cost to create and manufacture medications and also enforce drug price controls. Senator McEachin, this is why I want you to co-sponsor and support Senator Emmett Hanger’s prescription drug price transparency bill (SB487). This bill will require drug manufacturers to give information on the cost of research and development, manufacturing, marketing, price changes, and profits for each prescription drug sold in the Commonwealth of Virginia for a wholesale cost of $10,000 for a single treatment course (SB487: Prescription drug price, n.d.; Silverman, 2016).

But rather they promote higher cost of prescription drugs for profits of pharmaceutical companies, which are expensive to many patients who benefits outweigh the disadvantages, which makes consumers take harmful alternatives. A current example is EpiPens. Epipens have been used since 1977 and after Mylan bought EpiPens the cost was about $57 each. Later on,the prescription drug was aggressively advertised around the U.S., being the number one quick treatment for severe allergy attacks. In other words, it was the only well-known allergy attack treatment for many, allowing Mylan to increase the cost of their product. However, there are hurdles of competitors waiting to enter the market, and so the company increased the price again. As of May 2016, EpiPens have risen more than 450%, costing $600 a pack of two in the U.S. As a result, the poor can’t afford life-saving EpiPens and use cheaper but harmful alternatives, which results are not fully accurate. To clarify, due to the aggressive DTC prescription ads in the U.S on EpiPens it caused inflation to the product, not allowing many lives who need it be able to purchase it. Therefore, banning DTC prescription drugs in the U.S. will decrease the cost of products and thus, allow other opportunities than harmful or harder prescriptions for U.S. citizens to be able to purchase while decreasing the number of harmful drug

The mission statement of Mylan claims: “We are committed to setting new standards in healthcare. Working together around the world to provide 7 billion people access to high quality medicine, we innovate to satisfy unmet needs; make reliability and service excellence a habit; do what’s right, not what’s easy; and impact the future through passionate global leadership.” Mylan’s code of conducts is based upon innovation, integrity, reliability, service and teamwork; they are always looking for the next new possibility and want to help people enjoy a higher quality of life. Their ethical standards are set high and aim to keep their products pure by ensuring safe and clean environments. Mylan feels that there is no situation that they can’t

Mylan is a company that is most widely known for their delivery system of epinephrine, an adrenaline that aids in moderate to severe allergic reactions. Most recently, the company has seen their name in the headlines because of the actions that they have taken. Most notably, the 400% increase in the price of their product, dubbed Epipen. Their chief executive officer, Heather Bresch has received most of the backlash because of her questionable decision making. Under the ethics of care and Rawls theory of justice, Mylan and its CEO are engaged in unethical business dealings.

MedTech Pharmaceutical is not meeting its full potential in sales. Some changes would need to be considered to help encourage salespeople to perform better. Even though they are working off full commission, other incentives need to be implemented. Morale needs to be high in order to reach the potential. Encouragement for advances needs to be visible to the salespeople so they do not become complacent. Therefore, changes could help the organization grow and reach their potential.