Ethics in Business: Mylan Pharmaceuticals

After information surrounding the exploitation of Mylan's monopoly on EpiPen came to light, the public was understandably outraged. Patients, lawmakers, investors, and even people with no stake in the issue spoke out against Mylan, and used it as an example of corporate, and more specifically big pharmaceutical greed. Writer and management consultant Daniel Kozarich, who specializes in pricing and customer strategy, offered his ethical evaluation of the situation. He used a five-step test from the book, The Strategy and Tactics of Pricing: A Guide to Growing More Profitability , to evaluate if the price was ethical. Mylan passed 3 of the 5 tests, because the price was paid voluntarily, they provided their customers with ample information about the product, and they offered coupons and programs to allow for equal access of the good regardless of financial status. The part that they failed (miserably I might add) stipulates that sellers cannot exploit a buyer's essential needs

3. What is saying about the ethical situation?  How are they explaining their actions, their lack of action, or their reaction?  What do you think about their approach to the issue or problem? You might want to examine interviews, press releases and other materials in answering these questions. xplining their actions, their lack of action, or their reaction?  What do you think about their approach to the issue or problem? You might want to examine interviews, press releases and other materials in answering these questions. Mylan faced immediate and nasty backlash from the public after reports of their EpiPen price gouging surfaced. CEO Heather Bresch went before the House Oversight and Government Reform Committee following the fruition of the scandal and provided some justification for not only the company's actions, but her individual actions as the CEO.  Bresch expressed her frustration with the United States Healthcare system, continually referring to it

Today, Mylan Pharmaceuticals is an international giant, doing business in over 165 territories and countries and boasting 50 manufacturing locations worldwide. They provide over 635 products, and represent more prescriptions that the total in the United States filled by Pfizer, GSK, Johnson and Johnson, AstraZeneca, Merck, Sanofi, and Lilly COMBINED . This gives them an incredible amount of power, which we have unfortunately seen them exploit. Since the price gouging incident, they have made it abundantly clear to the public that their goal is to do things the "right way". Despite the fallout and embarrassment of being exposed for something so manipulative, they boast of having a track record of excellence when it comes to Corporate Social Responsibility and Governance. They have set out to create a better world by providing better health. Mylan's mission statement reads as follows: At Mylan, we are committed to setting new standards in healthcare. Working together

Mylan pharmaceuticals, originally Milan, was founded in 1961 as a distributor of drugs. In 1973, they went public on the over-the-counter market. Where they truly made their mark was the sale of generic drugs, brand name drugs that are no longer protected by patents, which accounts for 80 percent of total revenues. In late 1975, the board of directors "discovered" that the company was on an unruly path, as they were facing "imminent bankruptcy". Their inventories were overstated by $2 million, they owed over $400,000 in back taxes, 320 of their production workers were on strike, and the companies net worth sat at a negative $900,000. New management in 1976 came with sweeping change, and an emphasis on the production of generic drugs. By 1977 the company was profitable and the following year, their stock began trading on NASDAQ. In 1984, they released their first pharmaceutical product that was developed, manufactured, and marketed by Mylan, called Maxdize. The com