Running Head: PRICING THE EPIPEN: THIS IS GOING TO STING
Pricing the Epipen: This is Going to Sting
Introduction
Epipen is a unique drug that is mainly manufactured to aid in the emergency treatment of
acute allergic reactions. In this perspective, a detailed discussion on its pricing controversy is
and business ethics on a pharmaceutical company, Myran, which is facing public controversy
with regard to its pricing strategy. Precisely, the paper gives an information on what the chief
executive officer of the Myran pharmaceutical company should do, and points out on situations
when price discrimination/segregation is less or more acceptable (Glabau, 2016).
What the chief executive officer of the Myran pharmaceutical company should do
The chief executive officer of the Myran pharmaceutical company should set up new
prices for drugs. She should consider revising the pricing strategy and make sure that the set
prices are favorable (Rubin, 2016). This will offer numerous chances to patients suffering from
various ailments. Additionally, price standardization will help boost EpiPen sales and make the
company acquire more customers who are in need of the drug. Moreover, hence the customer is
the most important entity in any business, the C.E.O should ensure that consumers are contented
with company products and price, and ensure that they get all they want (Steenburgh). She says
that the company's pricing controversy was a window into a broken system, but she should
apologize to the customers, modify company products excellently and promise them a better and
safe future (Rubin, 2016).
Situations when price discrimination/segregation is less acceptable
Price discrimination is less acceptable in situations when the ratio of marginal social
value from an increase in quality to the entire social value of the product is increasing with the
client's willingness to make higher payments. This is done when customers desire for the product
surpass their love for money (Varian, 1989, p. 597-654).
Situations when price discrimination/segregation is more acceptable
Price segregation is more acceptable when firms have market power, when the firm has
the ability to prevent arbitration and reselling of products (Varian, 1989, p. 597-654). Precisely.
price discrimination/segregation is more acceptable if the profit from separating the market is
huge compared to keeping the markets combined which mainly depend on the relative elasticities
of demand in sub-markets. A Perfect instance of price discrimination include high premium
pricing, travel costs, gender based pricing and retail-related incentives (Greene, 2017)
Conclusion
In conclusion, Myran is a huge company and effectively works towards quality
production of EpiPen and other health care pharmaceutical products. The company successfully
operates under the management of , Heather Bresch, the company C.E.O, who should rectify the
existing challenge; EpiPen pricing controversy (Greene, 2017). Lastly, situations when price
segregation is more acceptable or less acceptable should be keenly identified prior to execution
of action over it and proper action taken (Glabau, 2016).
References
Glabau, D. (2016). Pricing the EpiPen: Drug Prices, Corporate Governance, and the
Financialization of Biomedicine. Somatosphere
Greene, J. (2017). EpiPen Controversy Reveals Complexity Behind Drug Price