Case Study

I have read and understood the academic honesty policy as outlined in the syllabus and the student handbook. By affixing this statement to the title page of my paper, I certify that I have not cheated or plagiarized in the process of completing this assignment. If it is found that cheating and/or plagiarism did take place in the writing of this paper, I understand the possible consequences of this act/s, which could include, but are not limited to a ZERO for this assignment and a failing grade for the course.
Name
Professor
Course
Date
Case Study
Mylan is an international pharmaceutical corporation that deals with license, manufacture, development, market, and dissemination of generic and specialty pharmaceutical products. The firm was founded in the early 1960s in West Virginia though it’s headquarters are currently in Hatfield, UK. Being a large company that deals with pharmaceuticals Mylan is faced with quite a bunch of challenges when it comes to marketing to healthcare providers and patients. For instance, when it comes to servicing direct customers the firm has to comply with the increasingly complicated marketing channels throughout consumers life cycle. On the other hand, when dealing with providers, Mylan has to adhere to the bureaucratic rules from the HIPAA.
Question1
The unique feature that makes Mylan stand out is its commitment and focus towards making quality medicine accessible to whoever needs them. The company has a vast portfolio of over seven thousand pharmaceutical products available to all sorts of customers be they purchasing on retail or wholesale.

The firm serves more than 165 nations. There is a culture of developing new products which are complex and not readily formulated medicines (“About Us | Mylan”). Roughly Mylan has about 50 plants, and they produce billions of doses of drug per year. Mylan mission is to set new standards in the healthcare department. With the vast and skilled workers at the disposal of the company, it encourages innovation, makes reliability a habit and impacts the future through zealous global leadership.
Mylan sees opportunities and takes immediate action to seize it. Through the value of innovation, the firm is continually introducing modern, efficient ways to assist people in enjoying better living standards. Workers in the company are integral and so is the management even when not supervised by governments. It is because of this firm ethical stance that the corporation has been able to maintain its reputation when it comes to keeping its products pure. Mylan believes that if people come together, they can go much further compare to if it were one individual. As a result, it relishes privileges to collaborate since it is not only invigorating but also powerful and enlightening.
Question 2
Investors in Mylan are demanding to know if the company is going to suffer from the competitive environment in the generic drug sector. In efforts of pushing up valuation multiples, Mylan used to participate in a consolidation phase. However, through this process, the EpiPen nightmare began, and it has made things hard for Mylan. As a way of retaliating the company had to delay its generic products which CEO Heather Bresch promised will not have a permanent impact, but just interim guidance hit. The delay of products has reduced the potential forms sales. It appears as though the pharmaceuticals will face a higher and volatile competition in comparison to if they stayed on schedule.
In such a case the best option for the CEO seems just to forgo the delaying strategy and only produce on schedule. By doing this the intensity of competition will not be too much, and moreover, investors will be confident once again. Currently, the company is in a situation whereby investors seem not to be in one accord, and this can be dangerous (Boslaugh). Therefore listening to what ideas they have might be of great aid in such a position. With an eye for the next 3-5 years of the company, the CEO should improvise ways of making it easier for Mylan’s products to get to the market. This could be done by partnering up with transportation agencies that are reliable and efficient for customers.
Question 3
The price variations of pharmaceuticals across nations seem reasonable. If for instance Mylan were forced to make their price consistent then perhaps they would have been kicked out of business in some regions. Customers would have opted to go for competitors products despite Mylan’s being high quality. Fairness in pricing avoids residents of particular areas who are buying on retail not to be overcharged. Most customers get drug coverage through workers and have diverse out-of-pocket expenses depending on the terms of those plans. Health providers pay part of the cost often getting discounts off list price conferred with manufacturers. Those without insurance coverage would have had to pay in full retail price if it were not for the fairness in pricing.
Mylan should be allowed to offer the EpiPen for $600 in the United States and $85 in France, and this is because of various reasons such as competition. It is not possible for the company to sell the generic drug at its usual price in states such as France where the level of competition is stiff. The company has to check what its competitors are doing and set a price that will be able to tag along. However in regions where the completion is not as much the company will have to hike its prices to compensate the loss incurred in the stiff competitive region. Additionally, in America, the cost of drugs depends on a sophisticated and opaque system where intermediaries negotiate on behalf of some patients while others are left to the high prices. It is because of these intermediaries that prices in the US are quite high compared to European countries.
Question 4
Since Mylan operates in more than one nation, it is apparent that it is likely to face numerous challenges. Having markets in over one hundred countries exposes the firm to each nation’s fluctuation in exchange rate, the impact of natural disaster and volatility towards the economy. Due to globalization the economic conditions of most countries are not stable and are unpredictable, this can be catastrophic for a company like Mylan (Richards). The company is also exposed to local regulations regarding drug approval and launch f new products. When these laws are not abode to the firm’s operations might be prevented or delayed. This poses a threat to Mylan considering that it is always trying to come up with new products.
Another risk that Mylan is open to is an aggressive merger and acquisition strategy. Although the intention of undertaking such a move might be to expand, an ineffective acquisition can jeopardize the combined businesses. There is also the possibility of the M&A taking too much time than anticipated. For example, in 2015 Mylan failed to conclude a deal of acquiring Perrigo after it had made a hostile bid. Failing at sealing the deal was a waste of resources that were used to pay the advisory fee. If Mylan signs for an aggressive merger and acquisition, it might lead to another hostile bid shortly. Usually, when such hostile bids are completed, they are subjected to high post-merger integration perils.
Question 5
The decision by Mylan executives to raise the price of EpiPens by six times cannot be morally justifiable. Everyone seemed to have been against it even CEO Bresch claims that he did not like the idea. This rise was unfair to customers, and they did not have a voice on the matter. Despite the Mylan widening its margin and driving higher returns within a week it cost the firm three billion US Dollars (Clarke). When it comes to the ethics pricing, no company should try to act smart by taking advantage of voiceless customers. Perhaps it seemed to be the best option the company had to climb back to its idealistic position in the market. However, in the end, it turned to be the worst move since it cost the firm even much more.
The EpiPen price hike gave live to a national controversy after families raised complaints. These grievances led the Congressional lawmakers to call upon federal agencies to scrutinize Mylan’s business practices. A company that was ones reputable was alleged to be unethical and dirty.
In conclusion, Mylan pharmaceutical firm holds the interest of citizens at heart, and it has been working towards improving the health of people. Despite the shortcomings, the company has had to face it has maintained to offer high-quality medicine to consumers. The crisis that firm is in can be overcome if management seeks help from skillful persons and wealthy well-wishers. It should not result in undertaking unethical means such as immensely increasing prices just for the sake of profit margin. Mylan should be conscious of the people it serves and charges them reasonably for its products.
Works Cited
“About Us | Mylan.” 2017, www.mylan.com/en/company/about-us.
Boslaugh, Sarah. The Sage Encyclopedia of Pharmacology and Society. 1st ed., 2016, Accessed 20 Feb. 2018.
Clarke, Toni. “U.S. Lawmakers Blast Mylan CEO over ‘sickening’ EpiPen Price Hikes.” U.S, 21 Sept. 2016, www.reuters.com/article/us-mylan-nl-epipen-congress/u-s-lawmakers-blast-mylan-ceo-over-sickening-epipen-price-hikes-idUSKCN11R2OG. Accessed 20 Feb. 2018.
Richards, Seth. “Market Realist.” Market Realist, 5 Jan. 2016, marketrealist.com/2016/01/weighing-mylans-operating-expenses. Accessed 20 Feb. 2018.