Harvard Case - Pricing the EpiPen: This is Going to Sting
"Pricing the EpiPen: This is Going to Sting" Harvard business case study is written by Thomas Steenburgh. It deals with the challenges in the field of Marketing. The case study is 9 page(s) long and it was first published on : Sep 2, 2016
At Fern Fort University, we recommend a multi-pronged approach for Mylan to address the EpiPen pricing controversy and regain public trust. This includes implementing a transparent pricing strategy, focusing on patient affordability, enhancing product innovation, and engaging in strategic brand management to rebuild the EpiPen's reputation.
2. Background
This case study focuses on Mylan, a pharmaceutical company facing intense public scrutiny for its pricing strategy for the EpiPen, an emergency epinephrine auto-injector used to treat life-threatening allergic reactions. The EpiPen's price had increased dramatically, raising concerns about affordability and accessibility for patients with severe allergies. This sparked public outrage, congressional investigations, and a wave of negative media attention, significantly impacting Mylan's brand image and financial performance.
The main protagonists are Mylan's CEO Heather Bresch and the company's leadership team, who need to navigate this crisis and find a solution to regain public trust and protect the company's future.
3. Analysis of the Case Study
This case study presents a complex scenario where ethical considerations, public perception, and financial performance are intertwined. To analyze the situation, we can utilize a framework combining SWOT analysis to understand Mylan's internal strengths and weaknesses, and PESTEL analysis to assess the external environment:
SWOT Analysis:
Strengths:
- Market dominance: Mylan holds a dominant market share in the epinephrine auto-injector market.
- Brand recognition: The EpiPen is a well-established and recognized brand among patients and healthcare providers.
- Innovation: Mylan has a history of developing innovative products in the pharmaceutical industry.
Weaknesses:
- Pricing strategy: The dramatic price increase of the EpiPen has generated significant public backlash and eroded trust.
- Transparency: Mylan's lack of transparency regarding pricing decisions has fueled public anger and scrutiny.
- Reputation damage: The negative publicity surrounding the EpiPen pricing has negatively impacted Mylan's brand image.
Opportunities:
- Product innovation: Mylan can develop new and improved versions of the EpiPen, potentially with features that address affordability concerns.
- Strategic partnerships: Collaborating with other healthcare organizations or advocacy groups can help Mylan regain public trust and improve access to its products.
- Marketing and communication: Mylan can leverage marketing and communication strategies to highlight its commitment to patient affordability and access to essential medications.
Threats:
- Increased competition: New entrants and generic drug manufacturers pose a threat to Mylan's market share.
- Government regulations: Regulatory scrutiny and potential price controls could impact Mylan's pricing strategy.
- Public pressure: Continued public pressure and negative media attention could further damage Mylan's reputation.
PESTEL Analysis:
- Political: Congressional investigations and potential legislation regarding drug pricing can significantly impact Mylan's operations.
- Economic: Economic factors like inflation and healthcare costs can influence patient affordability and demand for the EpiPen.
- Social: Growing public awareness of drug pricing issues and patient advocacy groups can create pressure for Mylan to address affordability concerns.
- Technological: Advancements in drug delivery systems and alternative treatment options could pose a threat to the EpiPen's market position.
- Environmental: Environmental concerns related to manufacturing and disposal of pharmaceutical products could impact Mylan's operations.
- Legal: Regulatory changes and potential lawsuits related to pricing practices can create legal challenges for Mylan.
4. Recommendations
To address the EpiPen pricing controversy and regain public trust, Mylan should implement the following recommendations:
1. Transparent Pricing Strategy:
- Adopt a cost-plus pricing model: This model involves setting prices based on the actual cost of producing and distributing the EpiPen, plus a reasonable profit margin.
- Publish detailed pricing information: Mylan should transparently disclose the cost breakdown of the EpiPen, including manufacturing, research and development, marketing, and distribution expenses.
- Offer tiered pricing: Mylan could offer different price points based on patient income or insurance coverage, ensuring affordability for all.
2. Focus on Patient Affordability:
- Develop a patient assistance program: Mylan should create a comprehensive program to provide financial assistance to low-income patients who cannot afford the EpiPen.
- Partner with advocacy groups: Collaborating with allergy advocacy organizations can help Mylan reach underserved populations and ensure access to the EpiPen.
- Offer generic alternatives: Mylan can consider introducing a generic version of the EpiPen at a lower price point to increase affordability.
3. Enhance Product Innovation:
- Develop a next-generation EpiPen: Mylan should invest in research and development to create a more advanced version of the EpiPen with improved features, such as longer shelf life, easier administration, and potentially even reduced cost.
- Explore alternative delivery systems: Mylan could explore alternative drug delivery methods, such as nasal sprays or patches, to provide patients with more convenient and affordable options.
4. Strategic Brand Management:
- Rebuild trust through communication: Mylan should engage in open and transparent communication with the public, addressing concerns about pricing and highlighting its commitment to patient well-being.
- Focus on social responsibility: Mylan can demonstrate its commitment to social responsibility by supporting allergy research and patient education initiatives.
- Leverage digital marketing: Mylan should utilize digital marketing channels, including social media and online advertising, to reach target audiences and rebuild its brand image.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: Mylan's core competency lies in developing and delivering essential medications. By focusing on patient affordability and product innovation, Mylan can align its actions with its mission to improve patient health.
- External customers and internal clients: The recommendations address the concerns of both external customers (patients) and internal clients (healthcare providers) by emphasizing affordability, accessibility, and product quality.
- Competitors: By developing innovative products and adopting transparent pricing practices, Mylan can differentiate itself from competitors and maintain its market leadership.
- Attractiveness ' quantitative measures: While it's difficult to quantify the impact of regaining public trust, the proposed strategies have the potential to increase sales, improve profitability, and enhance brand equity.
6. Conclusion
Mylan faces a significant challenge in regaining public trust after the EpiPen pricing controversy. By implementing a transparent pricing strategy, focusing on patient affordability, enhancing product innovation, and engaging in strategic brand management, Mylan can rebuild its reputation and ensure long-term success.
7. Discussion
Other alternatives not selected include:
- Maintaining the current pricing strategy: This option would likely lead to continued public backlash and further damage to Mylan's brand image.
- Lowering prices without addressing underlying issues: This could be perceived as a superficial attempt to appease the public without addressing the root cause of the controversy.
Risks associated with the recommended approach include:
- Resistance from shareholders: Some shareholders might oppose the adoption of a cost-plus pricing model or patient assistance programs due to potential impact on profitability.
- Increased competition: Competitors could capitalize on Mylan's efforts to regain trust by offering similar products at lower prices.
- Unforeseen regulatory changes: Government regulations regarding drug pricing could significantly impact Mylan's operations.
8. Next Steps
To implement these recommendations, Mylan should take the following steps:
- Within 3 months: Develop a detailed plan outlining the implementation of a transparent pricing strategy, patient assistance program, and product innovation initiatives.
- Within 6 months: Launch a public communication campaign to address concerns about pricing and highlight Mylan's commitment to patient affordability.
- Within 12 months: Introduce a new version of the EpiPen with improved features and potentially lower cost.
By taking these steps, Mylan can demonstrate its commitment to ethical business practices, patient well-being, and long-term sustainability.
Hire an expert to write custom solution for HBR Marketing case study - Pricing the EpiPen: This is Going to Sting
- Epipen Pricing
- Managing Drugs Forefront Personalized Medicine Erbitux Vectibix Story
- Medicult Pricing Radical Innovation
- Turing Pharmaceuticals Fair Profit Pricegouging Drug Industry
- Turing Pharmaceuticals Ethics Drug Pricing
- Pfizer Challenges Pharmaceutical Industry
- Tanner Pharmaceuticals Price New Drug
- Cabot Pharmaceuticals Inc
- Pharmaco
- Kramer Pharmaceuticals Inc
- Future Big Pharma
- Pharmaceutical Industry S
Case Description
This case examines the public controversy that erupted over the increasingly high price of EpiPens. Mylan Inc., (Mylan), a generic drug maker, bought the EpiPen product line from Merck in 2007. Since that time, the company both invested in marketing to raise awareness for the drug and dramatically increased the price, lifting it from $100 to $600 per two pack in the U.S. In 2016, simmering consumer anger about the high prices of pharmaceutical drugs finally reached a boiling point and a media firestorm ensued. The case challenges students to think about the role of fairness in pricing. How can Mylan justify the dramatic price increases? How can it justify the variation in prices across countries, as an EpiPen is priced at an equivalent of $85 in France? The case challenges students to think about how they would handle a public controversy. The EpiPen case is well suited for students in MBA, MBA for Executives, and executive education programs. For MBA students, it can be placed in first-year marketing, pricing, or marketing communications courses. For executives, it can serve as a vehicle to discuss both ethical issues of pricing and how to handle a public controversy.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Write my custom case study solution for Harvard HBR case - Pricing the EpiPen: This is Going to Sting
Hire an expert to write custom solution for HBR Marketing case study - Pricing the EpiPen: This is Going to Sting
Pricing the EpiPen: This is Going to Sting FAQ
What are the qualifications of the writers handling the "Pricing the EpiPen: This is Going to Sting" case study?
Our writers hold advanced degrees in their respective fields, including MBAs and PhDs from top universities. They have extensive experience in writing and analyzing complex case studies such as " Pricing the EpiPen: This is Going to Sting ", ensuring high-quality, academically rigorous solutions.
How do you ensure confidentiality and security in handling client information?
We prioritize confidentiality by using secure data encryption, access controls, and strict privacy policies. Apart from an email, we don't collect any information from the client. So there is almost zero risk of breach at our end. Our financial transactions are done by Paypal on their website so all your information is very secure.
What is Fern Fort Univeristy's process for quality control and proofreading in case study solutions?
The Pricing the EpiPen: This is Going to Sting case study solution undergoes a rigorous quality control process, including multiple rounds of proofreading and editing by experts. We ensure that the content is accurate, well-structured, and free from errors before delivery.
Where can I find free case studies solution for Harvard HBR Strategy Case Studies?
At Fern Fort University provides free case studies solutions for a variety of Harvard HBR case studies. The free solutions are written to build "Wikipedia of case studies on internet". Custom solution services are written based on specific requirements. If free solution helps you with your task then feel free to donate a cup of coffee.
I’m looking for Harvard Business Case Studies Solution for Pricing the EpiPen: This is Going to Sting. Where can I get it?
You can find the case study solution of the HBR case study "Pricing the EpiPen: This is Going to Sting" at Fern Fort University.
Can I Buy Case Study Solution for Pricing the EpiPen: This is Going to Sting & Seek Case Study Help at Fern Fort University?
Yes, you can order your custom case study solution for the Harvard business case - "Pricing the EpiPen: This is Going to Sting" at Fern Fort University. You can get a comprehensive solution tailored to your requirements.
Can I hire someone only to analyze my Pricing the EpiPen: This is Going to Sting solution? I have written it, and I want an expert to go through it.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Pay an expert to write my HBR study solution for the case study - Pricing the EpiPen: This is Going to Sting
Where can I find a case analysis for Harvard Business School or HBR Cases?
You can find the case study solution of the HBR case study "Pricing the EpiPen: This is Going to Sting" at Fern Fort University.
Which are some of the all-time best Harvard Review Case Studies?
Some of our all time favorite case studies are -
Can I Pay Someone To Solve My Case Study - "Pricing the EpiPen: This is Going to Sting"?
Yes, you can pay experts at Fern Fort University to write a custom case study solution that meets all your professional and academic needs.
Do I have to upload case material for the case study Pricing the EpiPen: This is Going to Sting to buy a custom case study solution?
We recommend to upload your case study because Harvard HBR case studies are updated regularly. So for custom solutions it helps to refer to the same document. The uploading of specific case materials for Pricing the EpiPen: This is Going to Sting ensures that the custom solution is aligned precisely with your needs. This helps our experts to deliver the most accurate, latest, and relevant solution.
What is a Case Research Method? How can it be applied to the Pricing the EpiPen: This is Going to Sting case study?
The Case Research Method involves in-depth analysis of a situation, identifying key issues, and proposing strategic solutions. For "Pricing the EpiPen: This is Going to Sting" case study, this method would be applied by examining the case’s context, challenges, and opportunities to provide a robust solution that aligns with academic rigor.
"I’m Seeking Help with Case Studies,” How can Fern Fort University help me with my case study assignments?
Fern Fort University offers comprehensive case study solutions, including writing, analysis, and consulting services. Whether you need help with strategy formulation, problem-solving, or academic compliance, their experts are equipped to assist with your assignments.
Achieve academic excellence with Fern Fort University! 🌟 We offer custom essays, term papers, and Harvard HBR business case studies solutions crafted by top-tier experts. Experience tailored solutions, uncompromised quality, and timely delivery. Elevate your academic performance with our trusted and confidential services. Visit Fern Fort University today! #AcademicSuccess #CustomEssays #MBA #CaseStudies
How do you handle tight deadlines for case study solutions?
We are adept at managing tight deadlines by allocating sufficient resources and prioritizing urgent projects. Our team works efficiently without compromising quality, ensuring that even last-minute requests are delivered on time
What if I need revisions or edits after receiving the case study solution?
We offer free revisions to ensure complete client satisfaction. If any adjustments are needed, our team will work closely with you to refine the solution until it meets your expectations.
How do you ensure that the case study solution is plagiarism-free?
All our case study solutions are crafted from scratch and thoroughly checked using advanced plagiarism detection software. We guarantee 100% originality in every solution delivered
How do you handle references and citations in the case study solutions?
We follow strict academic standards for references and citations, ensuring that all sources are properly credited according to the required citation style (APA, MLA, Chicago, etc.).