Pharmaceutical companies comprise one of the most necessary industries for consumers. The demands for many drugs stay prevalent throughout generations. This means that their products are essential for millions of people, helping them to maintain a healthy life. Due to this, the subject of prices is the most sensitive for customers in need. Although it is still a business, relying only on profits while selling popular drugs can be considered unethical. Therefore, increasing prices on drugs by such senseless numbers as 5000% should be illegal. It is not only immoral to deny many customers in poverty access to cheap medication but also affects brand name and reputation.
Drug prices should be controlled since any substantial changes can lead to the masses being unable to afford medication. Turing Pharmaceuticals’ explanation for the price increase was developing better treatment and staying in business (Zaslow, 2015). I believe that this is not a sufficient enough basis for the 5000% price increase. Many other developed countries have addressed the issue of the drug price increase by prohibiting it without evidence of substantial benefit. Since Turing Pharmaceuticals company do not offer any additional advantages to its customers at the time of purchase (Zaslow, 2015), their price increase should be considered unlawful. The change was unjustified as the company did not elaborate on the development expenses and provided no basis for the new number.
This practice can be considered unethical, which can have serious implications for a business in the future. For example, based on a case study of another company that functioned in unethical ways, it can lead to a crash in reputation and plummeting stock rates (Shah, 2020). Apart from that, such a substantial price increase, similar to Turing Pharmaceuticals, makes it easier for competitors to attract more clients and present themselves in a more positive light.
References
Shah, N. J. (2020). Effect of unethical practices in corporate world: A case study in WorldCom. International Journal of Law Management & Humanities, 3(3).
Zaslow, A. (2015). Drug that fights complications of AIDS and cancer goes from $13.50 to $750.Â