Introduction
This paper is a case study that corresponds to a case study of Medi-Cult, a biotech company based in Denmark which has developed new alternative to In Vitro Fertilization (IVF) called In Vitro Maturation (IVM). The IVM reduces maturity of egg from 30 to 2 days and due to its harmone free treatment it has psychological and physical side effects. Sources of economic value for IVM vs IVF, pricing and consumers are discussed in the case study questions below.
What are the sources of economic value for IVM vs. IVF?
In Vitro Maturation (IVM) is one of the newest treatment technologies in today's cutting edge Assisted Reproductive Technology (ART). IVM is the process of harvesting immature eggs, which are then matured in a laboratory
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If the price too low then could be impacted to profitability and risk having the credibility of the product questioned
b. If the price too high might only attract limited number of the infertile couples
Most of the Costumer is “Infertile Couple”, since they are the most important parts and they determine which treatment they wish to have. The bottom line of the Medi Cult case what the pricing strategy and level they should determine to attract the costumer to utilize the Medi Cult product. The most burden to Medi Cult if they set the price to low or too high, they have to take the risk. Medi Cult faces two different competition:
a. From large pharmaceutical companies since the IVM method significantly reduce the need to hormone and this method impact to the pharmaceutical business
b. The other biotech companies would develop their own product and clinical procedure.
Since the Medi Cult is the “First Company” in this business, they expect they have two or three years advantages by being the first to market. Therefore, the Medi Cult could implement the Monopolistic Power” in the market. The Price discrimination could be applied to this case is the “Third Degree Discrimination”.
The Third Degree Price Discrimination
The business plan with such high gross margin seems quite favorable. However, the company’s concept has some potential problems. The company did not mention how to minimize the risk of hurting women’s health when they proceeded to collect their eggs. Furthermore, the business plan did not include the best use time of the storage eggs. If the eggs were expected to keep in years, the quality of eggs could not be ensured. Finally, they did not offer a strong report to state the potential issues of using freezing eggs. Would the technique influence the health of babies?
For instance, the IVF technique involves use of hormonal stimulation using the follicle stimulating hormone (FSH). Looking at the pregnancy outcomes following IVM, you find that implantation rate is about 18% and live birth rates ranges from 15.9% to 33% per cycle (Chang et al, 2014). This item of information shows that the value delivered by the technique does not meet the customers’ expectations. This is a typical example of Price > Cost > Perceived Value as explained by Winer and Dhar (2011 p.251). Medi-Cult’s competitors include the large scale pharmaceutical companies like Wyeth who supply the hormones, FSH, used in IVF technique and Medi-Cult company which supply Cell culture media just like IVM.
Grounds: The use of In Vitro Gametogenesis will help many families who dream of procreating but are physically incapable of doing so. IVG would allow a sperm cell or an egg to be created out of stem cells. This would enable women with fertility issues, cancer survivors with reproductive issues, women beyond
And the customer are sensitive to the price since those products are using only few times and need to be change all the time.
product and starting a price war with competitors that would damage margins. In addition, a low priced
Pozgar and Santucci in their book titled Legal and Ethical Issues for Health Professionals covers artificial insemination, test tube babies and sterilization but no where did they dare to touch the in vitro process, I reviewed several books regarding the law and ethics in healthcare and none of the authors really ventured to give an opinion which led me straight to the ethics committee of the reproduction where we could obtain this information in its entirety. Not taking anything away from the other authors, there is not a lot of information available because of so many new procedures being introduced. The one thing that was consistent was the bill of patient’s
Almost all humans have a biological urge to have a child. However this biological urge is not always easily fulfilled for some humans because they suffer from infertility. Currently one in six Canadian couples is categorized as being infertility (Government of Canada, 2013). The World Health Organization defines infertility as a “disease of the reproductive system defined by the failure to achieve a clinical pregnancy after 12 months or more of regular unprotected sexual intercourse (World Health Organization, 2014). The inability to have a child naturally is a devastating medical diagnosis and many infertility couples will only have a biological child with medical intervention. The most effective medical treatment for infertility is In Vitro Fertilization (IVF). IVF is the process of collecting a women’s eggs, and fertilization them with sperm then replanting the eggs into the women’s uterus (Human Fertilisation and Embryology Authority, 2011). IVF is an expensive medical treatment that many infertilitie Canadians will need to use to fulfill their urge to a child. Even though one in six Canadian couples is define as infertilities the majority of Canada’s provincial governments do not fund infertility treatment through their health plans. Section one will examine New Public Management style of public administration. This section will look at why New Public Management developed. Who was the first government to use NPM. The benefits and cons of NPM.
In vitro fertilisation (IVF) marks a great step forward in medical technology, and Australia is a leader in the field. IVF is now a popular procedure for couples who are infertile or are having trouble conceiving. However, it raises ethical, moral and legal issues including the rights of an individual, property rights, the definition of human life, scientific experimentation versus a potential human life, religion, costs, and community, medical and taxpayer’s rights.
Regulation on IVF and other fertility services is necessary. The procedures being done are medical, psychological, and controversial enough to receive federal attention. When a human being is made in a lab, laws need to exist in case a couple divorces, changes their mind, or to prevent immoral decisions in the future. Becoming a parent is an understandable human right, nonetheless the desire of conceiving a child of one’s own can get out of hand. Yearning can lead to selfish decision making. Customers in the fertility clinics are desperate and will do anything they can to have a
Striving to find that common ground must incorporate patient’s rights and that the pursuit of future technologies in the reproduction area, as with all areas of medicine must calculate patient safety above all else; especially before profitability. For years, procedures such as In Vitro Fertilization has been marketed as a safe viable alternative method for reproduction, but at what cost ethically? According to the article In Vitro Fertilization: The Human
Assisted reproductive technologies include any fertilization involving manipulation of gametes/ embryos outside the human body and transfer of gametes/embryos into the body. They offer biomedical parenthood to various infertile couples who have often spent years trying to have a child and have exhausted all other avenues to have a child of their own. The new reproductive technologies give great help to infertile couples and make many new reproductive arrangements possible. The possibilities available for couples contemplating parenthood in unconventional ways under new reproductive techniques are two-party and third-party assisted reproduction. Assisted reproduction can raise some ethical concerns such as - the selection of the sex, how to
To begin with, I will provide the basic medical facts involving IVF to give a solid understanding of what goes into the whole process and what facts involving this process cause the questioning of the ethical and moral issues. Infertility affects about 4.9 million couples in the United States, or one in every twelve. Approximately one-third of infertility cases can be traced to causes in the female (Encarta). However, a small proportion of infertile
This article describes how and why there has been an increase in demand even though there are ethical issues. The article states, “‘People want it. It’s legal,’ said Dr. Michael Feinman, medical director of HRC Fertility offices in Westlake Village and Encino. ‘In a competitive market, it’s obviously a way to acquire other patients’” (“Lab Methods”).
associated with the use of advanced assisted reproductive technology (Teays&Purdy, 2001, Bioethics,Justice,&Health Care,p.648).Currently, the number of in vitro fertilization procedures that can be performed by 100 heath-care workers is about 1,000 per year. Any implication of medical and laboratory procedures that could improve results would decrease the number of healthcare workers needed and ultimately lower the cost per procedure (Teays&Purdy, 2001, Bioethics,Justice,&Health Care,p648).
Once the consumers like the product and realizes it is good quality, then they accept the product and the low pricing help the product create some buzz in the market and have some good techniques.