Page 28 - Mylan EpiPen Teaching Note
P. 28
MYLAN AND ETHICS
Mylan has struggled to repair its tarnished image as
the derision of consumers, the media and regulators
continued unabated.
The question however, is probably more basic - how
Mylan didn’t see this coming? After all it was based
on raising their prices by:
• Taking advantage of having a monopoly position.
• The product was unchanged therefore no reason
behind the price increases.
• This product is needed for people who have severe
allergic reactions.
• This product is not a “want” this product is a need.
Person may need this product to essentially save
their life.
The Wall Street Journal, which reported that Mylan low-
balled its calculation of EpiPen profits to Congress by
applying a misleading tax rate suggested the company’s
profits were about 60 percent higher than what Bresch
told Congress, or $166 per two-pack. A potential
overcharging of the government by $1.27 billion.
