The Medicines Company Case Analysis

2125 Words Nov 25th, 2006 9 Pages
Background

The Medicines Company's business model is to acquire or lease products in the development stage from leading pharmaceutical companies. Essentially, they will acquire or lease drugs that have been abandoned or shelved due to lack of early stage research results. The company's success lays on their being able to save "rejected" compounds, receive FDA approval for their use, and still turn a profit. This case study provides a look at the first few years of this start-up company, from the initial review of abandoned drugs to the release of their first drug Angiomax.

Angiomax is a direct competitor to Heparin, the leading anticoagulant used in the market. The company continued research on this drug, which was licensed from Biogen
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This may be even more of a challenge for the Medicine Company's business model. Patent protection on the compounds it acquires may be shorter than average due to additional time needed to repeat previous testing.

The three compounds described in the case target very different applications and patients. Future potential products may come from a wide variety of different classes and may target many unique diseases or problems. To bring these products to market and make a profit, the Company will need expertise in the class of each particular drug to appropriately test, develop, and market the product. It could be very costly to acquire the personnel, knowledge, and equipment necessary to achieve success across this wide range of possibilities.

The Medicines Company appears to lack a clear marketing plan for Angiomax and other future drugs reaching FDA approval. While they carried out many marketing pieces and events no connection seems to be made from one piece to the next. The major piece, the direction the marketing should take, seems to be lost. Physicians and pharmacists are the gatekeepers to the ultimate decision makers, the administrators. There is little to no discussion on individual marketing to each group.

Like any other company, the Medicines Company will face a challenge in pricing their products appropriately. They especially face a challenge with