Pricing Fuzeon - Cost of Innovation?
Details
MKTG121
28
2006
YES
600
Trimeris Inc.
Pharmaceuticals & Biotech
Switzerland
Innovation,New Product Development, Pricing
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.
Learning Objectives
The case is structured to achieve the following Learning Objectives:
- 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.
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