Running head: CASE STUDY ON EpiPens 1

Case Study on Epipens

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CASE STUDY ON EpiPens 2

Case Study on Epipens

An EpiPen injector's value has increased from around $100 for a two-pack in 2009 to

greater than $600 in the year 2016. News has spread about this vast increase in prices. Heather

Bresch, the Mylan CEO, Epipen’s manufacturer, was interviewed, and she said with 85% of

patients were essentially paying a lesser amount than $100 for the absurdly-priced drug. With

this, the insurance industry was to pay the balance of those increased charges for individuals with

insurance coverage. And premiums would be raised consequently. Additionally, everyone would

be paying for those high profits. Greed would have explained the hiking prices. In the meantime,

a possibly much inexpensive substitute drug, from Teva Pharmaceutical Industries, was waiting

for approval. A stiff race would come later, in 2017, when Teva, the alternative drug go to

market. (Rashid, 2017)

Consumer Value Store (CVS) stepped in and publicized that it would give a much

reduced-cost substitute to the Epipen, a generic form of Adrenaclick, produced by Impax

Laboratories. A two-pack of the Impax injectors costs with coupon reductions; a patient was to

pay cheaply for the drug. The alteration in values is surprising. Mylan must be embarrassed;

nevertheless I wouldn’t wait for them to be embarrassed. Consumer Value Store, alongside

various countries, should bring compassion, sanity, and ultimately moral business sense to this

argument. It ensures its clientele are put first, but then it also thinks about its long-term

association with them and reasonable proceeds. It’s in a situation to sell more largely the drugs at

a reasonable price. The company released a statement saying it was taking steps to reduce the

cost of the EpiPen for uninsured or underinsured users by, in part, providing a savings card to

offset the cost by up to $300. (Costales,2018)

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Over the previous era, pharmacological inventions have been used in medication and

curbing of an extensive range of diseases. These innovations are significant in modern healthcare

that reasonable access is an essential human right. Satisfying that a right creates tremendous

public value but poses a vital rule trial owing to its prices. Global expenditure on

pharmaceuticals Though one of the drivers of pharmacological expenditure is the demand for

medications, growing charges are a real worry for healthcare administrators because medicines

are progressively being valued unfairly. Medication charges often surpass price for money

compensation for companies’ ventures in the investigation. Therefore it is argued that drug value

is an increasing challenge for all states. (Frank & Nichols, 2019)

To attain societal value from drug invention requires rules to help the development and

research funding in zones of significant unmet need while concurrently giving access to

inventions. One way of promoting research investment is time-limited marketplace control via

patents eventually permits struggle to decrease value and thus intensifies access.

Challenges increase in the pharmacological sector since the perfect economic market rarely

occurs in healthcare, which can slope rewards for investments in the invention. The

pharmaceutical sector can exploit market control due to the inelasticity of demand for essential

drugs. Contrasting clients of usual goods, consumers with therapeutic needs may not defer use

until prices decrease. Likewise, regular customers are frequently protected from the price of the

medication due to numerous shared funding methods—most remarkably, private or public health

insurance. (Rashid,2017)

Increased medication prices can activate patients' susceptibility and shared funding

schemes by requesting for charges that far surpass normal meanings of price for money. These

excessive charges produce proceeds that far surpass the prices of medication development.
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Therefore these unaffordable and nonjustifiable prices may be due to greed alongside producers

using their market power to profit.

Solving this public controversy requires reviving the failing free market sort out drug

value. A working free market ensures drug prices come at affordable prices. Otherwise, why

would a drug be overpriced that persons are going into poverty not just in the developed but

developing countries elsewhere to get their drugs? There is something in the scheme of drug

valuing that's abnormal, and it's something needed to be looked at and check out the way to

fixation. The argument in global pricing changes could advantage pharmacological corporations

by providing them with an increased gain of billions of new consumers in middle and low-

income countries; however, the manufacturers should view this in the aspect of the betterment of

patients the drug price. (Costales, 2018)

Manufacturers in certain places in the world were permitted to produce drugs and supply

at a lower price. For example, Gilead gave two companies authorizations to manufacture generic

versions of Hepatitis C vaccination to vend only in low-income republics. Few consumers could

pay for the original list price; after that, the hepatitis C value fell drastically. It is known that the

important load on patients since continuous, increasing cover payments compulsory

progressively to pay the total list value for drugs at the drugstore. Patients need reasonable value

transparent care, mainly as the scheme shifts substantial costs to them. Though, value is the main

thing to address. (Frank & Nichols, 2019)

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References

Rashid, T. (2017). The EpiPen Problem: Analyzing Unethical Drug Price Increases and the Need

for Greater Government Regulation. U. Miami Bus. L. Rev., 26, 129.

Costales, S. S. (2018). EpiPen® Pricing–Evidence of a systemic problem with drug pricing in the

USA. Journal of Generic Medicines, 14(1), 29-34.

Frank, R. G., & Nichols, L. M. (2019). Medicare drug-price negotiation: why now… and how. N

Engl J Med, 381(15), 1404-1406.