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…show more content… 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