Pricing Fuzeon - Cost of Innovation?

  
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:

Price:
Case Code : MKTG121 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes
Case Length : 28 Pages
Period : 1990 - 2006
Pub Date : 2006
Teaching Note : Available
Organization : Trimeris Inc. and Roche
Industry : Pharmaceutical and Healthcare
Countries : USA, Europe

Abstract:

This case is about Fuzeon, an innovative 'first of its kind' drug used for the treatment of HIV/AIDS. The drug was developed by Trimeris and marketed by Roche.

Though Fuzeon was considered a 'breakthrough' drug, its price was very high. The case discusses the reasons as to why the company had decided to price the drug at a premium.

Fuzeon's pricing also raised ethical concerns as it was priced out of the reach of people who needed it the most. The case also discusses the challenges faced by Trimeris and Roche in marketing this drug.

Issues:

• Understand the issues in drug pricing, particularly for anti-AIDS drugs.

• Understand the risks that pharmaceutical companies face in developing and launching a new product in the market.

• Understand the challenges faced by companies in marketing a new product at a premium price.

Contents:

  Page No.
Fuzeon Gaining Ground 1
Background Note 3
Fuzeon - An Innovation 4
Limited Supply 5
Pricing Strategy 6
Fuzeon's Pricing - The Other View 7
Problem for Fuzeon 8
Marketing Initiatives 9
Future Outlook 12
Exhibits 15

Keywords:

Trimeris Inc., Roche, Fuzeon, Fusion Inhibitor Technology, Anti - AIDS / HIV drugs, New Product Development, Pharmaceutical Healthcare, Product Pricing, Marketing Management, Antiretroviral Drugs, Research and Development, ACT UP/NY, Clinical Trials, New Product launch, Distribution Network

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