Article Review: Impact of Unjustified Medicine Price Hikes - Analysis

This article review examines the significant issue of unjustified price increases for life-saving medicines, focusing on the case of Daraprim. The review discusses the actions of Turing Pharmaceuticals, which dramatically raised the price of the drug, and the resulting public outcry. It explores the social and business implications, highlighting ethical concerns and the impact on accessibility for the middle class. The analysis includes a discussion of SWOT and PEST tools used to evaluate the pharmaceutical company's actions and the broader context of medicine pricing. The review emphasizes the need for solutions to address the rising costs of essential medications and the importance of fair pricing to ensure access for all socio-economic backgrounds. References to relevant research are also provided.

Running head: ARTICLE REVIEW
Article review
Name of the Student
Name of the University
Author note

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Major issues of the article
This article deals with a major issue of today’s world and that is unjustified hike in the
prices of lifesaving medicines. To protest this social ill, numbers of specialists for infectious
diseases are continuously protesting against the overnight increase in the price of 62 years old
medicine that is used to treat life-threatening parasite infection (Stiglitz). This particular
medicine, was acquired by a famous group named Turing Pharmaceuticals which was formerly a
hedge fund organization. The management of the organization raised the price of the medicine
from 13.50 dollars a tablet to 750 dollars a tablet making it impossible for the middle class
population to be able to afford it when needed. This action raised a few questions to the society
that what might be the reason behind it and what are the possible forces that are driving the
management to take such decisions. In this case, it can be said that Turing’s increasing in the
prices of Daraprim is one of the main issues and there are number of organizations that are doing
the same (James, et al). The increase in prices has caused a serious shortage of those medicines
in market as many shops were refusing to buy the drugs from the manufacturers in that much of
higher price. This incident attracted the attention of the public media and then the situation got
the deserved limelight and people got aware of the situation.
Social and business implications of the social issue
As per the given article, the business leaders are looking at the commercial side and they
are raising the prices of the medicines to profit some more dollars in their account of profit and
there lies the ethical issue (Pollack). The drugs, which are sort of life saving drugs, must be
available in the market with fare pricing so that people from all the socio-economic background
can afford to buy those drugs to save their own life. The business leaders should not look at the

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commercial side and the products like medicines must be sold under the supervision of the
federal government, so that all the people can afford to buy them (Pauline, Werhane and Rolph).
On the other hand, many strategists opined that leaving the rest of the medicines prices in the
hand of the manufacturer and dealers, government can regulate the pricing of the life saving
drugs and that might benefit the population who does not have affluent money and also the
merchants who are merchandising the medicines (Pollack).
Appropriate business support tools
In the given article, SWOT analysis is done to determine the weaknesses of the company,
and PEST tool is used to determine whether the management of the pharmaceutical company
was right or wrong regarding their statement of why they have increased the prices of the
products. SWOT analysis would project the strength weaknesses opportunities and threats of the
organization, and PEST analysis would shed light on the political, environmental, social and
technological aspects of the organization (Coffin and Sullivan).
Thus to conclude, it can be said that some organizations has already raised the prices of
some life saving drugs and something needs to be done and the organizations must come with a
plan to solve this issue that is bothering the common people the most.

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References
Jarrett, James, et al. "Effect of increasing active travel in urban England and Wales on costs to
the National Health Service." The Lancet 379.9832 (2012): 2198-2205.
Stiglitz, Joseph E. The price of inequality: How today's divided society endangers our future.
WW Norton & Company, 2012.
Coffin, Phillip O., and Sean D. Sullivan. "Cost-Effectiveness of Distributing Naloxone to Heroin
Users for Lay Overdose ReversalCost-Effectiveness of Distributing Naloxone for Heroin
Overdose Reversal." Annals of internal medicine 158.1 (2013): 1-9.
Albert, Pauline J., Patricia Werhane, and Tim Rolph. "Introduction." Global Poverty Alleviation:
A Case Book. Springer Netherlands, 2014. 1-11.
Pollack, Andrew. "Drug goes from $13.50 a tablet to $750, overnight." New York Times 20
(2015): 2015.