Medicines Co Marketing

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The Medicines Company Case Write-Up: Terence Cho, Felipe Duarte, Aleks Loiko, Robert Shaw, and James Wang Section 4, Group 10 Medicines Company’s drug, Angiomax, outperforms Heparin, but incurs significantly higher costs to produce, making the drug difficult to attractively price. This difficulty in pricing stems from a poor positioning strategy for Angiomax which does not maximize the perceived value (PV) that the drug provides to its key customer segments. Therefore, Medicines Co., must develop a positioning strategy that maximizes the perceived value of Angiomax. Medicines Co. must first determine the critical characteristics its key customer segments (doctors, hospital administrators, and pharmacists) value in an anticoagulant…show more content…
to price Angiomax between $139 and $391. We recommend a halfway price of $265. This incentivizes doctors and, indirectly, hospital administrators to purchase the drug since this price is lower than the PV created by this positioning strategy. Implementing this solution requires additional considerations. First, Medicines Co. needs to thoroughly train its representatives on the cost savings and risks of complication statistics that show the significant effectiveness of Angiomax over Heparin for high-risk patients. This is critical for their interactions with doctors. Second, Medicines Co needs to allocate additional marketing budgeting to demonstrate that Angiomax is a more effective treatment for high-risk patients and not simply an alternative to Heparin. Finally, since Angiomax is close to being approved for heart attacks, the marketing team should perform another analysis of the marketing framework and budget more marketing to highlight the effectiveness of Angiomax in treating heart attacks over Heparin. Appendix A: Appendix B Table 1 - Calculation of True Economic Value (Average extra cost for complications or death: $8,000) Complication | High Risk(diff. Angiomax - Heparin) | High Risksavings | Very High Risk(diff. Angiomax - Heparin) | Very High RiskSavings | Death | 0.0% | $0.0 | -0.5% | -$40.0 | heart attack | -0.9% | -$72.0 | -2.6% | -$208.0 | repeat
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