Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug

636 Words Apr 12th, 2013 3 Pages
Questions for the Harvard case “Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug”
For March 20, write responses to the following questions for the Metabical case. 1) How is Metabical different from the existing weight-loss options? How is it better or worse than the other options?
Metabical is the first prescription drug approved specifically for overweight individuals (BMI between 25 and 30), those individuals who have weight-loss goals of approximately 10 to 30 pounds; other prescription weight-loss drugs were approved for use in both obese (BMI >30) and severely obese (BMI>40) individuals. Metabical is a dual-layer formulation: the first layer contained an appetite suppressant and
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Test trials suggested that 60% of the first-time users would repurchase a second supply and 20% of these would finish the program. This might be a weakness because those are really small percentages, believing that only 20% would finish the program might be a negative fact for the product and the company.

3) What factors should be considered when making decisions about the size of the package (the number of pills to include)? What package size would you recommend?
The factors that should be considered when making decisions about the size of the package are:
+ Duration of the treatment (Metabical was approved to be a 12-week treatment plan)
+ To be effective, the drug had to be a constant presence in the blood stream, so the optimal package would be a days-of-the-week package similar to birth control, this for easily keep track of dosing by seeing each pill and its corresponding day of the week.
+ The price should be considered too, because a 12-week price tag may be out of reach for many individuals to pay at the outset.
So what we recommend is to divide the treatment in three, so the package would be sold as a monthly treatment. In this way, people won’t quit the treatment and it would be a comfortable price to pay.

4) What different factors does Printup use to identify an appropriate price for a package of Metabical? What

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