In September of 2016 the medical community, and the United States congress, were appalled when healthcare company Mylan Inc. announced a 500% price increase (now currently at a cost of $608 dollars) for a two-pack of allergy attack saving EpiPens. The free market once again comes to the rescue as CVS has just announced it is selling a generic version of the drug at a sixth of the price.
CVS is the second largest drugstore chain in the United States with over 9,600 stores where the drug is being sold. The move by CVS is important because it eliminates the issue of high cost for those who have no health insurance or those with high deductibles.
CVS will be selling an generic alternative of EpiPen called Adrenaclick; Adrenaclick was only available at select locations up until CVS began selling the product and was retailed at about $200 dollars for a twin pack.
It is crucial also to know that the drug does not last forever once it is purchased; the drug expires anywhere from one year to 18 months after purchase. In that case, individuals who use the one-time use only injector will have to restock on top of the need to make another drug purchase for every 12-18 months that they do not use the injector. This creates a buying cycle that would be astronomical under Mylan's price of the EpiPen.
What CVS has done here is shown the value of the free market solution to fix issues like these. Government regulations, in most cases, harm more people then they help and so we are excited to see the private alternative come through to fix this problem. CVS saw the problem and decided to act fast by using their name and financial resources to make the drug more available to the public.
Although Mylan has been in the press a number of times since September, mainly being slandered, there was no real solution made by other corporations to pounce on the opportunity of selling the product for a cheaper price. Although there was an emergence of a company named Sanofi that too began selling an allergic reaction injector, Sanofi was also selling for relatively the same price.
What is interesting about the Sanofi introduction is that it shows businesses may see the free market as a means to sell their product for a slightly lower cost than the competitor. This goes to prove that slightly different prices are not what is going to gain traction for your company but rather what the consumer needs will affect the company in the end.
While CVS has done a great humanitarian deed to individuals in need of the drug, what they have done for the free market is far greater. Oftentimes in these situations, people call for more government power to fixe these issues, but that usually results in even more problems. Free market capitalism wins this battle.
› For more articles like this, follow our Facebook page.