ht mazonaws.com/5e0 Untitled document WHAT WOULD YOU DO? Mylan Headquarters, Canonsburg, Pennsylvania I 2012 and Mylan, the company behind the EpiPen Autoinjector is in the middle of a lawsuit. To settle, they agree to allow a generic competitor into the market in 2015, knowing this will cut into a big part of their business when the time comes EpiPen is an eph- repline autoinjector used to treat emergency allergy reactions EpiPen has been on the market since the 1980s but remains under patent because of the device particularly the safety cap for the needle, not the active Ingredient epinephrine Epinephrine is a hormone made by the body known as adrenaline and was first holated more than 100 years ago In the years leading up the 2012, Mylan had already been increasing the prices of EpiPen steadily In 2007, the cost was around 5100 for an EpiPen two pack by 2011, 516. After the settlement, Mylan used a common practice in big pharmaceutical companies of sharply increasing the price of a medication in the years before a generk becomes available. It is a final attempt to make big profits off the brand name drug before los ng business to the generic Drug manufacturers justify the high prices saying they cover the cost of years of reiearch and development that went into creating the drug original Nowits 2016, and Mylan is charging around 5600 for an EpiPen two pack. However, Teva, the expected generic was rejected by the Food and Drug Adminis- tration and Auto Pen's rongeneric competition was pulled from the marked due to doing problems EpiPen now has a monopoly on the market for this life saving drug and people are outraged by the price. With no heatives available. comers and politiciant we are demanding answers and change Senator luck Gassley towawrote to Mylan CEO Heather Bresch am concerned that the substantial price increase could limit access to a much needed medication Democratic presidential nomine Hillary Clinton's campaign spokesman Tyrone Gayle called for price cuts saying. Since there is no apparent ocation for the price increase Mylon should imme dutely lower the overall price of Eples People fering from life-threatening tegies won't be the only elected by the price increase Public schools and government institutions are among EpiPen customers because the medication is used for emergency treat- ment of sterk reactions Bresch sald she is as frustrated by the price increase as customer saying everyone should be frustrated She said the price reflects a system where intermedi aries such as wholesalers, retailers, and pharmacies alladd to the ultimate list price of the medication The system also requires customers to pay Insurance premiums and out-of-pocket costs for prescriptions medications "The patient is paying twice Bresch said "They're paying full retail price at the counter and theyre pay ing higher premiums on their insurance it was never intended that a consumer, that the patients would be paying list price, never. The system wasn't built for that In response to backlash from the high prices. Mylan announced plans to expand its co-pay assistance pro grams double eligibility for its patient assistance pro gram to 400% of the federal poverty level, continue to offer the EpiPen Schools program, and open pathways 10 patients can order EpiPen directly from the com pany, thereby reducing the cost EpiPenschools was launched in 2012 and has provided more than 700,000 free EpiPens to more than 65.000 schools nationwide Representative Elijah Cummings (D-Maryland was not impressed by Mylan's announcement. Offering a meager discount only after widespread bipartian cum is exactly the same tactic used by drug companies across the industry to distract from their exorbitant price increases Cummings said. "Nobody is buying this PR move anymore Mylan should not offer after the fact discounts only for a select few --it should reverseits massive price increases across the board immediately After continued oritism Beschreiterated that price only part of the problem. Al involved musta the steps to help meaningfully address the US health care crisishe said, and we are committed to do our part to die in collaboration with policymak payor patients and health care professionals Customers are no longer quietly tolerating in creases to the price of their medications as they wat lower-cost and generation. As additional Mylan is the best chain of command when big pronounce ments have to be made? If you were CEO at Mylan, what would you do? products begin to face competition from generics, solu- tions will have to be found to make up for loss of future revenue is raising medication prices the model to use in the future? What other solutions are available? The company will have to adapt to survive as more competitors enter the market. What benefits would there be to a change in organizational structure of process? Should departmentalization be considered for Mylan? If so, what type of departmentalization? As problems arise and solutions are pondered who has the authority to make the ultimate decision? What . hop ht mazonaws.com/5e0 Untitled document WHAT WOULD YOU DO? Mylan Headquarters, Canonsburg, Pennsylvania I 2012 and Mylan, the company behind the EpiPen Autoinjector is in the middle of a lawsuit. To settle, they agree to allow a generic competitor into the market in 2015, knowing this will cut into a big part of their business when the time comes EpiPen is an eph- repline autoinjector used to treat emergency allergy reactions EpiPen has been on the market since the 1980s but remains under patent because of the device particularly the safety cap for the needle, not the active Ingredient epinephrine Epinephrine is a hormone made by the body known as adrenaline and was first holated more than 100 years ago In the years leading up the 2012, Mylan had already been increasing the prices of EpiPen steadily In 2007, the cost was around 5100 for an EpiPen two pack by 2011, 516. After the settlement, Mylan used a common practice in big pharmaceutical companies of sharply increasing the price of a medication in the years before a generk becomes available. It is a final attempt to make big profits off the brand name drug before los ng business to the generic Drug manufacturers justify the high prices saying they cover the cost of years of reiearch and development that went into creating the drug original Nowits 2016, and Mylan is charging around 5600 for an EpiPen two pack. However, Teva, the expected generic was rejected by the Food and Drug Adminis- tration and Auto Pen's rongeneric competition was pulled from the marked due to doing problems EpiPen now has a monopoly on the market for this life saving drug and people are outraged by the price. With no heatives available. comers and politiciant we are demanding answers and change Senator luck Gassley towawrote to Mylan CEO Heather Bresch am concerned that the substantial price increase could limit access to a much needed medication Democratic presidential nomine Hillary Clinton's campaign spokesman Tyrone Gayle called for price cuts saying. Since there is no apparent ocation for the price increase Mylon should imme dutely lower the overall price of Eples People fering from life-threatening tegies won't be the only elected by the price increase Public schools and government institutions are among EpiPen customers because the medication is used for emergency treat- ment of sterk reactions Bresch sald she is as frustrated by the price increase as customer saying everyone should be frustrated She said the price reflects a system where intermedi aries such as wholesalers, retailers, and pharmacies alladd to the ultimate list price of the medication The system also requires customers to pay Insurance premiums and out-of-pocket costs for prescriptions medications "The patient is paying twice Bresch said "They're paying full retail price at the counter and theyre pay ing higher premiums on their insurance it was never intended that a consumer, that the patients would be paying list price, never. The system wasn't built for that In response to backlash from the high prices. Mylan announced plans to expand its co-pay assistance pro grams double eligibility for its patient assistance pro gram to 400% of the federal poverty level, continue to offer the EpiPen Schools program, and open pathways 10 patients can order EpiPen directly from the com pany, thereby reducing the cost EpiPenschools was launched in 2012 and has provided more than 700,000 free EpiPens to more than 65.000 schools nationwide Representative Elijah Cummings (D-Maryland was not impressed by Mylan's announcement. Offering a meager discount only after widespread bipartian cum is exactly the same tactic used by drug companies across the industry to distract from their exorbitant price increases Cummings said. "Nobody is buying this PR move anymore Mylan should not offer after the fact discounts only for a select few --it should reverseits massive price increases across the board immediately After continued oritism Beschreiterated that price only part of the problem. Al involved musta the steps to help meaningfully address the US health care crisishe said, and we are committed to do our part to die in collaboration with policymak payor patients and health care professionals Customers are no longer quietly tolerating in creases to the price of their medications as they wat lower-cost and generation. As additional Mylan is the best chain of command when big pronounce ments have to be made? If you were CEO at Mylan, what would you do? products begin to face competition from generics, solu- tions will have to be found to make up for loss of future revenue is raising medication prices the model to use in the future? What other solutions are available? The company will have to adapt to survive as more competitors enter the market. What benefits would there be to a change in organizational structure of process? Should departmentalization be considered for Mylan? If so, what type of departmentalization? As problems arise and solutions are pondered who has the authority to make the ultimate decision? What . hop