1.02 MK 001 The Gray Zone - EpiPen
Marketers have a responsibility to set prices that satisfy both the customers and their bottom line. However, when a company is one of the only competitors in its market and sells a product that people need, it can set the price as high as it wants—even if it’s not the ideal price for customers. A recent example is Mylan, a pharmaceutical company that makes the EpiPen, an injection used to fight serious allergic reactions. Historically, Mylan has had about 90% of the market share for this drug, so competitive pricing has not been a concern. In fact, over the past several years, the company has raised the price of EpiPens substantially, increasing the price by over $500 in just seven years. Many people who need this medication to survive can no longer afford to pay for it. Mylan has defended the price hikes, blaming the complicated health care system. The company has argued that its price increases are fair and justified due to the expenses associated with the product.
What do you think? Does a company have the right to increase prices as much as it wants when it does not have competition? Or should companies consider the customer when setting prices? Should pricing strategies differ when the product affects people’s health?
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