The Medicines Company Case Study Solution Report

The Medicines Company Case Analysis

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 in 1997, and received approval for marketing in 2001 for use in coronary angioplasty procedures. The company continued working towards approval for the use of Angi0max in treating arterial thrombosis and other related conditions.

Problems

Analysis of the Medicines Company case revealed several critical aspects that need to be addressed. The pharmaceutical industry can be very profitable, but is also very risky. As described in the case, bringing a new drug to market is a costly and lengthy process requiring an average of 10 years. Big Pharmaceutical companies struggle to keep upcoming drugs in their pipeline to provide revenue when existing drugs come off patent and are replaced by generic compounds. With 1 in 4000 compounds making it to market, there is significant risk of failure that can be reduced by having many compounds in development. Additionally, a drug company's reputation can easily be tarnished by safety issues with a compound, dramatically affecting their sales.

Large pharmaceutical companies tend to focus on blockbuster drugs to gain more profits so there may be compounds that are discarded because they hold smaller revenue potential. However, a business plan that focuses on "rescuing" these and other abandoned drugs holds many of the same risks and potentially more than Big Pharmaceutical companies face. The Medicines Company lacks a thorough business plan that addresses these issues and their own unique challenges which include:

1. Higher risk of product failure when acquiring an already "failed" drug

2. Lack of product pipeline for future revenue

3. Discarded compounds may come from a variety of different classes and targets requiring expertise in several areas

4. Marketing and selling plan and product to key decision makers

5. Pricing Angiomax, and other premium compounds, against existing commodity drugs

Analysis

The Medicines Company was...

Loading: Checking Spelling

0%

Read more

Clarkson Lumber Company Case Study Analysis

1157 words - 5 pages PAGE PAGE 4 Case Analysis: Clarkson Lumber Company Running head: Case Analysis: Clarkson Lumber CompanyCase Analysis: Clarkson Lumber CompanyFrank FoltynUniversity of Maryland University CollegeTMAN 625 section 9044September 10, 20071. Why has Clarkson Lumber borrowed increasing amounts despite its profitability? There are a couple of reasons for Mr. Clarkson...

Case Study for Padgett Paper Products Company- analysis for the options

1843 words - 7 pages Options:-Portion of debt through insurance company-Continue at 90 day terms-Factor receivables-Collateralize assets-Mortgage general purpose building-Independent Canadian Financing-Flat dividends-Payment Terms - accelerate receipt-LIFO / FIFOEvery available option has a positive and a negative aspect to it. Here we will decipher what option...

Ford Motor Company: Supply Chain Strategy Analysis from HBS Case

1333 words - 5 pages Ford Motor Company: Supply Chain Strategy2/11/02Finding the Best FitThe Ford Motor Company finds itself in a dynamic business environment where new technologies and practices offer the potential to alter in a significant way the landscape in which it operates. Henry Ford was in his time an innovator in offering 'cars for the masses'. He...

Financial Analysis of The Coca-Cola Company

2302 words - 9 pages Company overview: Coca –Cola (KO) is one of the world’s largest beverage companies. Company was incorporated in September 1919 under the State of Delaware law and headquarters is located in Atlanta Georgia. But from 1886, company established its brand in US (Coca-Cola, 2012, p. 1). Currently company is providing for more than 500 varieties of non-alcoholic sparkles to the customers around the world. Apart from this, company also serve for still...

IT risk analysis of The RedDog Company

4297 words - 17 pages Tallinn Technical UniversityHomework project in Foundations and Management of Cyber Security ITX8043IT risk analysis of The RedDog CompanyTallinn 2009Security analysis 2009Tallinn University of Technology 2TABLE OF CONTENTSHomework project in Foundations and Management of Cyber Security ITX8043..........1Introduction...

Analysis of the Taylor Woodrow Company

1072 words - 4 pages Analysis of the Taylor Woodrow Company Taylor Woodrow Company is involved in construction and properties development. Its primary business is house building. It builds home throughout the United Kingdom through the Bryant Band. And it also builds homes internationally through countries such as USA, Spain, Gibraltar and Canada through its Monarch branch. Taylor Woodrow construction business is focused on activities...

Analysis of the Coca Cola Company

4632 words - 19 pages Analysis of the Coca Cola Company History "Coca-Cola enterprises Incorporated, employees 66,199 operates, 444 facilities, 47,235 vehicles, 1.9 million pieces of cold drink equipment and sold 3.8billion unit cases in 46 states in the united states, all 10 provinces of Canada and portions of Europe including Belgium, France, Great Britain, Luxembourg and the Netherlands" (Coca-Cola facts 99). An, Atlanta Pharmacist Dr. John Slyth Pemberton...

Case study The Walt Disney Company: The Entertainment King

1264 words - 5 pages 1.Briefly describe the type(s) of diversification strategies that Walt Disney pursues/has pursued over the years.The Walt Disney company can be seen as a highly diversified company. Over the years, it has pursued a wide range of diversification strategies that we can enhance:•

Colgate-Palmolive Company: The Precision Toothbrush case (HBS)

831 words - 3 pages Colgate-Palmolive (CP), a global leader in household and personal care products, is poised to launch its new toothbrush in the United States, Colgate Precision. To enter the super-premium segment of a highly competitive US toothbrush market with its technologically innovative product, the company should decide on positioning,...

The Wallace Group Case Analysis

1924 words - 8 pages The Wallace Group Case Analysis Introduction The Wallace Group is a diversified company that deals in the manufacture and development of technical products and systems. The company consists of three primary operating groups, electronics, plastics, and chemicals. The electronics group is by far the largest, its size is approximately the size of the plastics and chemical groups combined. Of the $70 million in net sales, the electronics...

Analysis of the Case Law

3355 words - 13 pages Analysis of the Case Law "There is no prescribed constitutional relationship between the courts and the executive, but the judges assert their inherent power, derived from the rule of law, to review executive actions" The question starts off by giving us an element of the separation of powers when it says that there is no prescribed...

Case | HBS Case Collection | July 2001 (Revised August 2005)

Medicines Company, The

by John T. Gourville

Abstract

It is early 2001 and the Medicines Co. just received FDA approval to market Angiomax, a blood thinner to be used during angioplasties and heart procedures. It is intended to be a better alternative to Heparin, an 80-year-old drug that costs less then $10 per dose. The company believes it can sell Angiomax for a much higher price than Heparin--but how much more? Angiomax also represents the first of several drugs being developed under a rather unique business model. The company is in the business of "rescuing" drugs that other companies have given up on--i.e., they purchase or license the rights to drugs that other companies have halted development on, with the intent of completing the development process and bringing the drug to market. With the success of Angiomax, the company feels that this business model has been validated.

Keywords: Business Model; Change Management; Decision Choices and Conditions; Cost Management; Price; Product Marketing; Product Launch; Product Development; Risk and Uncertainty; Health Industry; Pharmaceutical Industry;

0 thoughts on “The Medicines Company Case Study Solution Report”

    -->

Leave a Comment

Your email address will not be published. Required fields are marked *