In 2016, Mylan Pharmaceuticals came under intense scrutiny and criticism for sharply increasing prices for the EpiPen emergency allergy treatment manufactured and sold by it. The U.S. House Committee on Oversight and Government Reform called upon the CEO of Mylan to testify in the wake of public outrage over EpiPen, whose list price rose dramatically over several years. The device, which stops potentially fatal allergic reactions by injecting a precise dose of epinephrine, now costs about $600 for a two-pack, up from roughly $100 when Mylan acquired EpiPen in 2007. EpiPens are used to treat persons suffering a severe allergic reaction to a bee sting, drugs, or food by administering epinephrine through a proprietary auto-injector. Mylan was virtually the only manufacturer of this type of life saving device. Critics characterized Mylan's conduct as unethical price gouging. Because the EpiPen had virtually no competitors and health insurers often covered a large portion of its cost, it seemed that Mylan was able to repeatedly raise the price of its EpiPen with little pushback until 2016 when Mylan was cast as a new drug industry villain. Under which of the ethical models can Mylan best defend its business plan which led to a 500% price increase.



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