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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)

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