In 2016, Mylan, the manufacturer of EpiPen, made headline news after the company increased the price of a two-pack from $103.50 in 2009 to more than $608.61 in 2016. EpiPens deliver "life-saving" medication (epinephrine) to people experiencing allergic reactions (notably reactions to peanuts), and they are routinely carried by those who suffer from allergies, as well as by their families. School nurses stock them in their cabinets. Although the drug itself is not expensive (costing only a "couple of dollars"), it is the medication delivery system that makes EpiPen a high-demand product. After news of the price increase made the headlines, Mylan announced that it would launch a generic version of the product at a list price of about $300. A few weeks later, CVS Health announced that it would start selling a generic version produced by an EpiPen competitor for a list price of about $110 for a two-pack. 

If you were the CEO of Mylan, how would you defend your price increase? Is Mylan's conduct ethical or just good business? The CEO of Mylan said that the company had donated more than 800,000 free EpiPens. Again, if you were the CEO, how would this factor into your marketing and public relations strategy? Should the government get involved in pricing?

Answer rating: 100% (QA)

Defending a significant price increase for a lifesaving product like the EpiPen can be challenging and it depends on the specific circumstances and ar... View the full answer