The outrage over the price increase by Mylan for the EpiPen product has caused the company to consider ways to recover from the criticism. The generic offering of the EpiPen at half the price will help to deflate their bad image. The company stock will rebound as investors look for opportunities to invest while the stock price is at a low level.
Mylan's launch of the first generic Epipen auto injector, is not enough to deflate criticism. Mylan made a mistake by raising the price of the Epipen so high in the first place, and because of that, no matter what they do, they are still going to be criticized. Many people are still going to buy their product, which will boost the company's stock, but only because it's life-saving. If it weren't a life or death medicine, then many people would not be buying their products anymore because they are being very selfish by raising the prices so that they can make more money, when this product is the only reason some people are alive today.
Mylan's launch of its first generic Epipen auto injector does not go far enough to provide a boost to the stock price and deflate criticism. The move comes after the company drastically raised prices on the life saving device. Subsequently, the CEO made it worse by blaming the system, rather than greed. It will take a long time for the company to recover.
Firing the CEO of the company is probably a good start, and this generic auto injector will help the goodwill, but the company really screwed up on this one. If they hadn't raised the prices quite so much, there wouldn't have been such a backlash. Now they are desperately trying to fill the void in the market without allowing in real competition.