The Medicines Business Case

Drugs company was founded with a view to acquire,

develop and commercialize pharmaceutical drug products in

late periods of development.

Angiomax, a blood thinning drug was positioned as an

substitute for heparin.

Angiomax met this criteria

Essential less than 5 years to get to the market

Needed less than $60M to get to the marketplace

Had in least a 65% probability of getting to marketplace

Had the actual to generate by least $100M(sales/ year)

Angiomax being a blockbuster drug would have to be priced

suitably considering the profitability.

Analysis

• At company level, the sales of prescription drugs was projected to grow 10% annually coming from 2000 through 2010.

• Prescription drugs made up 9% of medical expenditures in 2k and had been growing by a 20% annual rate.

• Nevertheless Biogen anticipated that it will cost $22.99 per dosage to produce Angiomax, a new production process created by The

Medicines Company lowered the COGS from $100 to $40.

• The Medicines Organization rooted for more clinical trials wherein, it undertook further research to confirm the key benefits of Angiomax which in return, could help marketing the new successful drug as well as its affects.

Suggestion

• The Medicines Business being the new kid inside the block must aggressively marketplace its new blockbuster merchandise, Angiomax.

• It would be smart for the item after applying the new production strategy to be priced at a 60% low cost than initially assessed by Biogen since the cost per dose depends upon $40. • However , spending a sizeable chunk with the budget about marketing will help in promoting the drug.

• The success of Angiomax would lead to many more drugs being produced from its after abandoned phases.