Pricing the EpiPen: This is Going to Sting – Case Solution

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Pricing the EpiPen: This is Going to Sting Case Answers

Introduction – Pricing the EpiPen: This is Going to Sting Case Study

Heather Bresch, the CEO of Mylan Inc., faces a critical decision in response to the EpiPen pricing controversy. This situation demands careful consideration of the appropriate course of action to address the concerns and criticisms regarding the EpiPen’s high cost.

Bresch must navigate a complex landscape to make decisions that not only safeguard the company’s financial interests but also address the ethical and public health implications of drug pricing.

1. What should Heather Bresch do? Why? What risks do you see with this plan of action?

Heather Bresch, the CEO of Mylan Inc., confronts a key choice in light of the price dispute surrounding the EpiPen. To handle this circumstance properly, she should consider the following line of action:

Immediate Price Reduction: Bresch should take urgent action to cut the price of the EpiPen. This measure is necessary to assuage the public’s worries and critiques over the excessive expense of a life-saving drug.

By cutting the price, Mylan can show its dedication to patient welfare and healthcare accessibility (Rubin 2016). Lowering the price may also assist recover public confidence and strengthen the company image.

Transparency and Communication: Bresch should aggressively convey the rationale for the price drop to stakeholders, including consumers, healthcare professionals, and regulatory organizations (Glabau 2017). Demonstrating clarity regarding the pricing structure and the efforts done to maintain product quality may help regain confidence and credibility.

Market Expansion: Simultaneously, Mylan should examine the potential for market growth, both locally and globally. This approach coincides with the long-term growth goal and may minimize the company’s dependence on the U.S. market, where price issues are most severe (Costales 2016). Expanding into areas with a greater frequency of allergies and allergic responses may open up new income sources.

Collaboration with Regulators: Bresch should aggressively engage with regulatory bodies to agree on a sustainable price mechanism for the EpiPen. Collaborative efforts with government bodies may help create a fair and consistent price structure for vital pharmaceuticals, decreasing the risk of future pricing conflicts.

Risks Associated with this Plan:

1. Short-Term Profit Impact: Lowering the price of the EpiPen may have an immediate detrimental effect on Mylan business and shareholder value. The corporation must properly identify and manage this financial risk.

2. Market Expansion Challenges: Expanding into overseas markets may create legislative, cultural, and operational hurdles. Adapting to diverse regulatory frameworks and customer preferences needs careful preparation and resources.

3. Long-Term Sustainability: While a price decrease is vital to address public concerns, it must be balanced with the requirement to support research and development activities and preserve product quality. Lower pricing may diminish the cash available for innovation.

4. Competitive Pressures: If Mylan cuts the price of the EpiPen considerably, it may face more competition from other pharmaceutical firms. Maintaining a balance between affordability and profitability is key.

5. Reputation and Trust Rebuilding: Rebuilding trust with consumers, healthcare providers, and regulators will take time and effort. Mylan must demonstrate its commitment to ethical pricing and patient welfare consistently.

In conclusion, Heather Bresch should implement a…