Mylan’s decision to increase the price of Epipen was ethical. This is because; Mylan adhered to the basic laws and ethical customs in increasing the price of the product. In addition, the price increase was done in a manner that was legal and transparent. A utilitarian approach takes into consideration the happiness of those involved. The objective of utilitarianism is to maximize the happiness of all beings affected by the business action. This is done by weighing the consequences of both alternatives. It can be argued that Mylan’s action of increasing the price attracted more research and development by pharmaceutical companies whose findings benefited more people. This would not have happened if Epipen was priced lowly.
However, a utilitarian approach would be opposed to the decision by Mylan to increase the price of Epipen. This is because, Mylan was making enough profits before increasing the price of Epipen but after the hike, the product became extremely unaffordable and it could not benefit majority of the consumers, thereby putting their lives and health at a great risk. In addition, she received a pay hike during her tenure as CEO with the company. This left people wondering and angry as to why that money would not have been used to offset a lower price for Epipen which would then be available to people that needed it and especially those with meagre resources. This has even led to protests from consumers who have petitioned Mylan to step down.
In conclusion, we can assert that the long term benefits accruing from Mylan’s decision to increase the price of Epipen benefited more people as opposed to the number that would have benefited with low priced Epipen.