Profits are used by corporations for several reasons. Beyond shareholder equity, profits are often reinvested in further research. Within the field of medicine there have been significant advances in treatment options for various chronic and terminal diseases. Pharmaceutical companies have contributed greatly to these advances. As we think of the ethical principles of Beneficence (do good), Nonmaleficence (do no harm) and Justice, a good use of corporate profits in this way can garner public support. Furthermore, corporations are also expected to be socially responsible. Millions of people who have severe allergies, such as those allergic to peanuts and peanut based products, have purchased the EpiPen for use in life saving situations. Mylan Pharmaceuticals acquired the EpiPen in 2007, but its price surged by over 400% between 2009 and 2016, which drew widespread criticism and creating an ethical dilemma. This dilemma consists of the conflict between the availability of a lifesaving device and its inaccessibility to some populations. This dramatic price hike led to concerns about accessibility for patients who rely on the EpiPen, particularly since there were few alternatives available. The company faced allegations of price gouging and unethical practices, prompting public outrage and investigations by lawmakers. However, Mylan’s investments to the community included providing rebates, donating 800,000 free EpiPens, distributing supplies to 70,000 schools as an example of corporate responsibility. Unfortunately, this controversy highlighted broader issues within the pharmaceutical industry, such as the lack of price regulation and the balance between profit motives and public health concerns. In the end, Mylan announced additional rebates and offered a generic version of the drug. Even that has been criticized by some who suggested that even a generic version would allow Mylan to maintain control of the market share. But Mylan isn’t alone. Turing Pharmaceuticals was also accused of price gouging and, like Mylan, was also subpoenaed before the Oversight Committee of the House of Representatives. Beyond alleged egregious conduct, the fact remains that many drugs approved by the Food and Drug Administration (FDA) are very expensive often making it unaffordable for patients in need. Just recently, the FDA approved Kisunla, a product of Indianapolis-based Eli Lilly, that has proven results in reducing the rate of cognitive decline for adults with mild cognitive impairment. The price is $48,000 for 18-months of treatment. 11% of Pennsylvania residents over 65 years of age have Alzheimer’s but the population disproportionately impacted are minority groups, who also struggle with limited health insurance coverage due to high costs. In this essay, you should discuss the ethical implications of prescription drug pricing as it relates to accessibility, the impact on vulnerable populations, corporate profitability and corporate social responsibility. You may provide other examples and arguments to support your analysis.
This contest is open to all high school students currently enrolled in 11th or 12th grade classes and able to complete a federal W-9 should they be one of the winners. You can choose one of two ways to submit an entry: