Pricing The Epipen: This Is Going To Sting Case Solution & Answer

Pricing The Epipen: This Is Going To Sting Case Study Analysis


Mylan Incorporation is a generic drug maker and a pharmaceutical organization and Heather Bresch is the CEO of EpiPen Maker Mylan. The organization is critically examined by the New York Times, the Washington Post, Forbes and Los Angeles Times,because the article readsthat there had been a 671 percent compensation increase over the past eight years. EpiPen – a medical device is primarily used for the automatic injection of a measured adrenaline dose through a spring-loaded needle. It is used for treating conditions like anaphylaxis, whichoccurs when a person experiences exposure to allergens.The condition of anaphylaxis is mainly triggered by pharmaceutical drugs, latex, bee stings and some foods like shellfish and nuts.

The reaction typically begins in five to thirty minutes of the exposure, leading to difficulties in breathing, restriction of airway passage, lower blood pressure and other uncomfortable symptoms like: nausea, facial swelling, itchy skin and dizziness. The preference of EpiPen was due to its fast, easy and consistent delivery method, because the delivery of adrenaline through a standard syringe is considered more difficult. Thus, the product line of EpiPen was acquired by Mylan, because of its availability in the United States forover 25 years from Merck in the year 2007. Particularly, the price of the product tends to vary across different countries. (Steenburgh, 2016)

Problem Statement:

Since the acquisition of EpiPen;there had been an increased investment in terms of marketing, to create awareness for the drug and increase in the drug’s price, which lifted from$100 to $600 per 2-pack in the United States. In the year 2016, a rapid increase in the price of the pharmaceutical drug had led towards the public controversy, followed by the involvement of media and government to justify the increase in the product’s price. Due to the federal securities’ fraud;Bresch wondered whether Martin Shkreli’s support would assist or further exacerbate the issue.


SWOT Analysis:


  • The marketing investment of Mylan had made EpiPen a well-known brand to treat people with allergies, turning out to be a Kleenex of autoinjectors or genericized trademark.
  • The use of EpiPen led towards a significant increase in the number of patients,i.e. 67 percent growth over the period of seven years.
  • The revenue of EpiPen had demonstrated growth from around $200 million to not less than $1 billion.
  • My EpiPen Savings Card reported the provision of up to $100 per two-pack carton refill of Epipen,due to which around 80 percent patients with commercial insurance received free EpiPen in the year 2015.
  • The offering of discounts by Mylan was based on promoting a greater access of EpiPen to the potential consumer by defraying the cost of some of the consumers.


  • The shares of Mylan had declinedby more than 10 percent in the previous week due to the product’s higher price.
  • The price of EpiPen was unreasonable, because it varied across different states like $85 in France and $131 in Canada,leading to government scrutiny for both personal and business concerns.

Because of anincreased price of EpiPen; Mylan had experienced a relatively lowernet profit,i.e. around 8.9 percent…………………………..


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