Introduction
The article touches on the significant social problem of the massive overnight price increase for Dopaprim – the standard infection treatment. This problem results in ethical concern when vulnerable populations, especially patients with compromised immune systems and pregnant women, deal with unaffordable prices for life-saving drugs. At the same time, the companies cover their greed with good intentions.
This issue is chosen since Turing Pharmaceuticals does not slightly increase the price according to the improving living standards but hikes it 5000 times: from $13,50 a tablet to $750 (CNBC, 2015). Meanwhile, Dopaprim is the only available treatment for toxoplasmosis, meaning that patients with this life-threatening condition either suffer and purchase the medication or die from this disease. The increasing price pushes patients to the extreme of risking their lives.
Another part of the ethical concern is that the Turing company benefits from the vulnerable and helpless patients’ sufferings. The most hideous fact about this situation is that Mr. Shkreli – the chief executive of Turing – affirms that the higher prices are justifiable to invest them into creating a more effective medication (Pollack, 2015). However, all experts claim it is still unjustifiable and unsustainable for the healthcare system. Hence, this issue raises ethical questions about the affordability of the necessary drug and the real motives of the Turing company trying to gain profits at the cost of the population’s health.
Social and Business Outcomes of the Problem
Avoiding the social consequences of the massive increases in drug prices is impossible. Primarily, the medication’s target group is harmed due to unaffordable prices, meaning that patients with toxoplasmosis, pregnant women, and individuals with AIDS are the first-line victims of this chance (Pollack, 2015). The most expected outcome is perpetuating the health disparities between populations who can access the drugs even for the unjustifiable prices and the rest. Although this infection is not spread via direct interaction, a negligent approach to its treatment leads to more frequent outbreaks, deteriorating the health outcomes for the public. As a result, society starts challenging the healthcare system’s priorities and motives, which erodes the patients’ trust.
In light of the detrimental social aspects, business outcomes might be seen as less pernicious. However, this view undermines the consequent effects of business on society. Essentially, Turing Pharmaceuticals becomes criticized by the institution, drawing the international community’s attention and destroying its reputation (CNBC, 2015). These extreme price hikes cause legal scrutiny around the company’s leaders and decision-makers, who can be further judged and sentenced after the investigation.
The most pivotal business outcome is the changing market dynamics since other companies might create generic and falsified copies of Dopaprim (Pollack, 2015). These counterfeit copies usually have more unpredictable side effects and are less efficient than the original drug. Moreover, White (2021) notes that falsified medicines for malaria are associated with 116000 deaths annually. Thus, the increasing treatment price rates have far-reaching social and business implications that should be instantly resolved for the public’s safety.
Pareto Analysis
Pareto analysis recognizes the issue of the significant overnight price hike for Dopaprim, its associated factors, and its assessment. As the price hike magnitude is the most disappointing point, it is evaluated as 50% of the problem’s adverse effects (Pollack, 2015). Vulnerable patient populations and market disruptions account for 20% each, negatively affecting public health.
The other two factors – distorted reputation and legal scrutiny – divide the percentage equally. This distribution forces the Turing company to address the magnitude of price hikes, making them more affordable to vulnerable populations and preventing counterfeit drug distribution from protecting patients’ health. The more egoistic consequences for the company are less prioritized but still should be resolved to ensure that the public does not demolish its trust and give a chance to the company. This analysis proves that the company should try to regain the public trust through the available pricing.
Conclusion: Action Plan
As a corporate citizen, I would not stick to the decisions made by Mr. Shkreli and advocate for the public’s health protection. Turing’s founder’s plan to invest in new medication and sustain the health outcomes for the infected populations resulted in a public backlash and contributed to his sentencing, so his action plan was ineffective. Additionally, Mr. Shkreli is forced to return 65 million dollars from the Dopaprim’s hikes (Torchinsky, 2022). His efforts to justify this price are not worth his further state.
If I were him, I would reevaluate the price for Dopaprim by conducting market and cost analysis. The next step would be to provide discounts for the most vulnerable layers to guarantee positive health outcomes and demonstrate that the company embraces its social responsibility. I would be eager to admit my mistake and choose to be guided by ethical principles to cooperate with the public.
I decide to conduct transparent and legally compliant initiatives to stabilize the pharmacological market and sustain the population. Once I choose to increase the price of Dopaprim slightly, I will contact legal practitioners and healthcare parties to negotiate its affordability. The newly established price is communicated directly to the public and introduced with the collaboration of philanthropic partners ready to eliminate healthcare inequalities.
This action does not only improve Turing Pharmaceuticals’ reputation but also helps populations access life-saving medications. Although the prior unethical decision to benefit from the patients’ sufferings interferes with the public’s trust, the company still has a chance for an overall happy ending. Effective communication aligned with sustainability practices is the best ethical decision to the market fluctuations of Dopaprim prices.
References
CNBC. (2015). Turing CEO Martin Shkreli talks 5,000% drug price hike (Full interview). Youtube [Video]. Web.
Pollack, A. (2015). Drug goes from $13.50 a tablet to $750, overnight. New York Times. Web.
Torchinsky, R. (2022). ‘Pharma bro’ Martin Shkreli has been released from prison. NPR. Web.
White, C. M. (2021). Counterfeit drugs: A major issue for vulnerable citizens throughout the world and in the United States. Journal of the American Pharmacists Association, 61(1), 93-98. Web.