After 4 years hard working, 30 million dollars in acquiring Angiomax, further R&D, and initiate marketing test, in order to successfully market the first flagship drug Angiomax, the Medicines Company now have a couple of decisions to make in terms of initial pricing, segmentation, marketing strategies, etc (see exhibit 1).
Decision I: At what initial price should Angiomax be offered to the market? Which segments should be targeted first? Why?
In order to successfully market Angiomax, The Medicines Company must look at the different segments that may use the drug, and what the value Angiomax could offer to the buyer and to the end user..
Biogen, the company that created Angiomax, studied a number of angioplasty patients during its clinical trials. It found little improvement over the widely used drug Heparin with low-risk patients. However, higher risk patients (those who previously had a heart attack or those who were hospitalized due to unstable angina) saw a slight improvement with the use of Angiomax.
Very high risk patients, those who had a heart attack within the two weeks immediately proceed the angioplasty, saw a significant improvement over Heparin.
For this reason, The Medicines Company should initially target the very high risk and high risk angioplasty patients. Value Angiomax can offer to end users are straightforward.
Value to End User:
* The results of Angiomax are more predictable than the results of Heparin
* Complications less prevalent with Angiomax than Heparin, less time in the hospital
* Much less risk of death in very high-risk patients
Since angioplasty has to be undergone in hospitals of medical centers, the hospital buyers have more power than the end users in the market. Three major groups are our targets as buyers. To doctors who are more concerned about the outcome of the drugs, Angiomax has...