Mylan has recently raised the price of the lifesaving allergy medication Epipen. The increase in price now totals over 400% since 2009, now totaling $609. There are coupons that lower the price, which cover about $300 dollars. Also, Mylan has released a generic version at about half the cost of Epipen. However, because Mylan has not decreased the price of the drug, just offered ways to pay for it, tax payers are now taking the brunt of the cost. This drastic markup has caused outrage among Americans, especially parents whose children rely on the drug. Mylan says that a broken healthcare system has caused such a major change, but all of the price increases have come after competition was reduced. With no competition, Mylan can increase the price. Because of the recent price increase, Mylan's profit margins have quadrupled. The House Oversight Committee is now investigating CEO Heather Bresch, daughter of Senator Joe Manchin, and the rest of Mylan.
We must keep in mind how Epipen works. You purchase a two pack, but you might need more for at school, work, in a purse, or for when you travel. Also, Epipens expire, so you are constantly replacing them regardless of whether you use them or not. So is it right to raise the price 400% to $609 just because there is no competition in the market? It seems like there is no capitalism, no consumers choice. Epipen should not have a monopoly over the allergy rescue medication industry. It is very lucrative, how Mylan is taking advantage of people who depend on Epipens. The monopoly Mylan has over Epipens connects to the monopoly Rockefeller had with Standard Oil. The Supreme Court ruled Standard Oil to be illegal, so we need to question Mylan's practices.
Source: http://money.cnn.com/2016/08/29/investing/epipen-price-rise-history/index.html
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