Even despite the company’s market being protected by the FDA, it has continued to increase the drug’s price. Mylan’s actions are an indicator of the way pharmaceutical firms negotiate in the course of a brief monopoly whereby they set the price as high as possible and for as long as they can. Since they were aware the patent was expiring soon, they allowed greed to spur them to put the lives of patients in danger. People who require EpiPen to keep their children safe are forced to use old components of the drug as they cannot afford to buy new ones. To make matters worse, Mylan know very well that the drug has a shelf life of just a year, whether it is consumed or not. It goes on to increase its price knowing that it is a life-saving drug that consumers will continue buying.
Mylan’s stakeholders include insurance companies, patients, families, schools, and pharmacies. The patients are the most adversely affected considering that they are the ones needing EpiPens the most. Should they not be in possession of one, or an expired dosage does not work, they may have to be rushed to a hospital. Such a situation would cause even more harm to the family, particularly if they could not afford the drug in the first place. Various insurance companies have also capitalized on the situation since they are the ones assisting consumers to pay for the drugs plus treatments. They will charge more for insurance covers as a result of the increase in prices. Various pharmacies would be at a disadvantage since fewer consumers will be purchasing EpiPen from them, leading to a reduction in revenue. In the case of people with children, they are definitely concerned with their well-being and finances. To make matters worse, if a family has several children that suffer from life-threatening allergies, it is affected by the increases in prices several times. Schools are supposed to be in possession of several doses of EpiPen in case allergic students need them. However, it has been reported that some schools across the nation are being forced to hold onto old components.
Utilitarianism starts to think a little more in terms of ethics by taking into consideration the happiness of the parties involved. Hence, according to the theory, Mylan’s actions were unethical. The company was making satisfactory profits before it increased the price of EpiPen, and the drug was still affordable even in the course of the initial increments. However, the cost has soared to the extreme; a situation that has caused stakeholders to be more outraged than the company is pleased.
For the justice theory, Mylan’s management faced a congressional committee hearing. They were asked to explain the price hikes and come up with a solution for it. although the measures they took may not have been satisfactory, they did face some kind of justice.