Price Gouging
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