Every year, pharmaceutical companies face extreme criticism regarding price increases on life-saving drugs. These price increases make it difficult for consumers to afford these essential goods. The cost increase is disproportionate to inflation or the cost of manufacturing. Although these companies have a fiduciary duty to their shareholders to maximize profit, are these price increases ethical?
In recent months, Mylan, an American global generic and specialty pharmaceuticals company, has faced extreme criticism regarding the six-fold price increase of their EpiPen allergy-reaction injector. This increase has consumers asking how could a product whose list price in 2009 was $100 for a two-pack to $608 today be ethically right? Before answering this question, it is important to look at the history of Mylan’s life-saving drug.
In 2011, the list price for the EpiPen was $164.98. Due to the product’s shelf life of one year, consumers had to replace their EpiPens annually,
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More and more pharmaceutical companies are charging astronomical prices on life-saving drugs. Consumers interpret these price increases as the producer profiteering off a person’s life or death need. Mylan’s response to the criticism was introducing a generic brand of EpiPen with a list price of $300. Although much more affordable than the specialty brand, companies should not be offering discount or generic brands on life-saving drugs. According to Kozarich, there should be no excessive, unjustified profits on essential products or services (Kozarich). For instance, if a person went into cardiac arrest and needed immediate medical attention, hospitals would first treat the patient before determining whether or not the individual could pay for the required