Pricing Fuzeon - Cost of Innovation? |
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» Marketing Case Studies Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source. |
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ExcerptsFuzeon - An InnovationFuzeon was the 'first of its kind' drug for the treatment of HIV infection in treatment-experienced patients with evidence of viral replication despite ongoing therapy. It was to be used in combination with other antiretroviral (anti-HIV) drugs for the treatment of HIV. (Refer Exhibit III for different brands of antiretroviral drugs and how they act)...
Pricing StrategyFuzeon was launched at a premium price of 18,980 euros (US$ 20,570) per patient per year in Europe and just under US$ 20,000 per patient per year in the US. This was a record price for an antiretroviral drug and was twice the price of the most expensive HIV treatment drugs available on the market at that time (Refer to Exhibit V for list of some high priced AIDS drugs)...
Problem for FuzeonDespite being a breakthrough product, Fuzeon had more than its fair share of problems. Analysts felt that Fuzeon's price was out of reach for most of the people in the industrialized countries let alone those in the developing countries. Because of its high price, some ADAPs refused to put Fuzeon on their formularies... |
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