Price Gouging in the Pharmaceutical Industry

226 views 2 pages ~ 296 words
Get a Custom Essay Writer Just For You!

Experts in this subject field are ready to write an original essay following your instructions to the dot!

Hire a Writer

Price gouging has become a common feature in the pharmaceutical industry. Marathon and Turing companies recently raised the prices of important prescription drugs with 6% (Herper, 2017). The price increases by the two companies are legal. Marathon Pharmaceuticals raised the price for Emflaza, a steroid that has never been approved in the United States. As such, the Food and Drug Administration considered the steroid a new drug and Marathon Pharmaceuticals had to go through the process of getting it approved. Drug production uses a pipeline system where companies develop a large portfolio of potential compounds and eliminate the products that are not viable through their production process. Although the use of a number of candidates increases the likelihood of creating a fiscally rewarding drug, it is an expensive process. It is estimated that it costs about $2.6 billion to create a new drug and introduce it to the market successfully (Herper, 2017). Therefore, in an attempt to recover the costs of inventing a new drug, it is legal for the pharmaceutical companies to raise the prices.

Ethics and American Values

            Price gouging for essential pharmaceutical products is unethical. The drugs whose prices were raised are used to treat life-threatening conditions which raise the individual and organizational cost of treatment. The American values of capitalism, free markets and innovation cannot exceed the value for the life of individuals. All organizations must respect the life of Americans and work to improve the standards of living before seeking to make any profits. Moreover, pharmaceutical products exist to improve the living conditions of the people and they must seek to accomplish this vision first before making profits.


Herper, M. (2017, February 10). Why did that drug price increase 6,000? It is the law. Retrieved from

September 18, 2023


Subject area:

Price Gouging

Number of pages


Number of words




Writer #



Expertise Price Gouging
Verified writer

JakeS has helped me with my economics assignment. I needed an urgent paper dealing with Brexit. JakeS has been awesome by offering an outline with ten sources that have been used. It helped me to avoid plagiarism and learn more about the subject.

Hire Writer

This sample could have been used by your fellow student... Get your own unique essay on any topic and submit it by the deadline.

Eliminate the stress of Research and Writing!

Hire one of our experts to create a completely original paper even in 3 hours!

Hire a Pro