Several years ago there was extensive coverage in the U.S.A over the pricing of the Epipen® auto-injector for injecting adrenaline (epinephrine) which had increased from USD 165 for a set of 2 in 2011 to USD 609 in 2016, making the life-saving medication (which has only a 12-month shelf-life) unaffordable for many.
It should be noted that the adrenaline is reported to cost ~1c per dose. The high cost is related to the auto-injector for which there were (controversially) no FDA-approved generic equivalents until august of 2018. Hence the company were effectively allowed a monopoly on the product.
a. Why would a situation such as this not arise for consumers in Australia? (1 mark)
b. The current dispensed price for a single dose pen for adrenaline in Australia is $84.21 and there are two brands listed on the PBS? How much is the consumer likely to pay? (3 marks)
Several years ago there was extensive coverage in the U.S.A over the pricing of the Epipen® auto-injector for injecting adrenaline (epinephrine) which had increased from USD 165 for a set of 2 in 2011 to USD 609 in 2016, making the life-saving medication (which has only a 12-month shelf-life) unaffordable for many.
It should be noted that the adrenaline is reported to cost ~1c per dose. The high cost is related to the auto-injector for which there were (controversially) no FDA-approved generic equivalents until august of 2018. Hence the company were effectively allowed a monopoly on the product.
a. Why would a situation such as this not arise for consumers in Australia? (1 mark)
b. The current dispensed price for a single dose pen for adrenaline in Australia is $84.21 and there are two brands listed on the PBS? How much is the consumer likely to pay? (3 marks)