Case study 10

Justin Benedict

Case Study 10: Mylan EpiPen CEO Heather Bresch has been the principal target of Mylan’s criticism. What actions could she and her corporate team have taken to communicate the EpiPen price increase?

To date, all public statements made by Bresch in regard to the price increase have been perceived by the public as insincere and unacceptable. Not only has Bresch deterred blame away from Mylan, but has also understated the brand’s profit margin on an EpiPen. The general public needs transparency and certainty. Bresch should have communicated who or what should be blamed, and prove that Mylan has not been intentionally price-hiking EpiPens. This should have been conducted in a clear and sincere manner on all of Mylan’s owned media channels. Bresch should have also brought in external organizations to investigate and report on reasons for the price increase prior to the FTC investigation, providing credibility to Bresch’s claims that were perceived as insincere.

There is a clear disparity between the production price of one unit ($1.00) and the selling price ($600 for a two-pack). If Bresch’s PR team can communicate what contributes to this “gap” whether it be packaging, distribution, storage, etc. Consumers that rely on EpiPen for survival must be involved and informed about the processes and developments made with the product.

With public perception low in the pharmaceutical industry at a low, it is now more important than ever in the industry to conduct business with transparency and responsibility. Bresch should have made a public commitment to reducing the price of EpiPens in the future, even if cutting profits is necessary. Public anger directed towards Mylan and Bresch will not be resolved until EpiPens become more affordable for the consumers who rely on the product.

There was a clear lack of transparency and abandonment of Mylan’s CSR throughout the price increase. As a leading global player in the pharmaceutical industry that produces half of the most prescribed general medicines, sells its products in 165 countries and employs 35,000 people, socially responsible behavior is even more important. Mylan’s mission to “make reliability and service excellence a habit” no longer applies to the brand. This negative change is corporate culture doesn’t happen overnight, and may stem from decades of poor leadership.

Bresch needed to communicate a significant effort to realign Mylan with its core mission and values, through new top-down training protocols, HR management and new standards for payraises.

Bresch should also have published every counteractive measure taken by Mylan to mitigate the price issue, including issuing coupons, savings card, generic alternative, direct purchase pathway or "EpiPenHSchools" program on every owned media channel. Bresch should have also made a public commitment to expanding these options on a consistent basis.

Social media played a role in vilifying Mylan and Bresch. What social media efforts could Mylan have taken to counteract the negative social media impact after announcing the price increase?

Mylan received widespread criticism through every prominent social media platform, from a range of sources including parent activists, patients, leaders of government, allergists, celebrities, and the general public. Criticism was due to Mylan’s failure to justify the price increases of EpiPens, diverting blame away from the brand and building relationships with negatively perceived third party endorsers while losing positively perceived third-party endorsers. Mylan should have addressed all of these audiences on social media in a sincere and transparent manner while providing needed transparency and commitments to positive change.

Mylan could have created a digital space for consumers who have been impacted by the price increase to share stories, discuss, and contribute constructively to the conversation. Mylan should also feature positive stories in this space, showing how Mylan’s products have saved lives. Testimonials from social media influencers would be valuable in this space. The use of positive hashtags such as #Change4Mylan on applicable platforms would have also counteracted negative hashtags like #EipGate to an extent.

Mylan also should have created a social media initiative designed to communicate research and development efforts taken by the brand to cut the cost of EpiPen’s, through media like Youtube and Flickr. Regardless of the reason for the price increase, it is too high for the majority of consumers who use it. A fundamental issue that the brand should be working towards a solution to. Mylan should also execute monthly webinars, in which consumers with severe allergies can talk with Mylan executives and express their opinions and become involved in the reconstruction of Mylan. Bresch’s presence in these webinars would be valuable.

The negative perception of Mylan is further perpetuated by the brand’s interactions with social media influencers, as exemplified by Mylan’s third party endorser Martin Shkreli who has faced similar criticism and been arrested for securities fraud. If Mylan wanted to counteract the negative social media impact, it needed the help of social media influencers that are credible, admired and ethical. It would have been beneficial as well to reach out to some of the influencers that have spoken out against Mylan if they can be shown that Mylan has made a true effort to mitigate the issue price issue.

WORKS CITED: LaMattina, John. "Pharma's Reputation Continues to Suffer -- What Can Be Done To Fix It?"Forbes. Forbes Magazine, 18 Jan. 2013. Web. 05 Apr. 2017.