Mylan, a major pharmaceutical company, increased the price of EpiPens, which treat anaphylactic shock, from $100 in 2007-2009 to over $600 by 2016 despite a production cost of $10. This price gouging led to billions in profits for Mylan but scrutiny from attorneys general and Congress. When questioned about the price hikes, Mylan's chairman and CEO dismissively told critics to "copulate with themselves". As a result, Mylan faced legal investigations and ultimately paid $465 million to settle charges with the Department of Justice.

1. Mylan Price Gouging Scandal
COLTON LAFACE

2. Mylan
Major pharmaceutical company operating globally
Strategy over past decade
◦ 2007: Merck KGaA (EpiPen)
◦ 2013: lobbied for “School Access to Emergency Epinephrine Act”
◦ Financial incentives, liability
2015: $1.5B in EpiPen sales (40% of total profit)

3. EpiPen
Epinephrine autoinjector
◦ Treats anaphylactic shock
Largely covered by insurers, who pass
cost onto consumers
2015: Mylan maintaining 90% market
share in U.S.

4. Price Gouging Issue
EpiPen wholesale price
◦ 2007-2009: $100
◦ July 2013: $265
◦ May 2015: $461
◦ May 2016: $609
◦ Production Cost : about $10
New York Times: in 2014, mid-level Mylan executives began questioning price
hikes

5. Price Gouging Issue
Chairman of the board Robert Coury:
“…was untroubled. He raised both his middle
fingers and explained, using colorful language,
that anyone criticizing Mylan, including its
employees, ought to go copulate with
themselves.”
CEO Heather Bresch “provided similarly dismissive
responses”

6. Legal Trouble
Attorney Generals, SEC begin investigating and subpoena
CEO Bresch testifies to Congress
Settlement of $465M with US Department of Justice

7. Opinion
Greedy business motives and management
Manipulating consumers (price gouging)
Shareholder Theory