Pricing it Right: Three Caselets in Pricing

Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : MKTG187
Case Length : 13 pages
Period : 2006-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : Priceline.com; Apple, Inc.; F. Hoffman-La Roche Ltd.
Industry : Travel; Consumer Electronics; Pharmaceutical
Countries : Global

To download Pricing it Right: Three Caselets in Pricing case study (Case Code: MKTG187) click on the button below, and select the case from the list of available cases:

Price:
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

» Marketing Case Studies
» Marketing Management Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company

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.

<< Previous

Caselet 3: Roche's Pricing Strategy for Fuzeon

On January 29, 2008, a US-based pharmaceutical company Trimeris, Inc. (Trimeris) announced the global sales figures of its only commercially available drug Fuzeon. Fuzeon was a drug used for the treatment of HIV/AIDS⁴⁴ patients which the company had co-developed and co-marketed with one of the world's leading pharmaceutical companies F. Hoffman-La Roche Ltd.⁴⁵ (Roche).⁴⁶ The sales of Fuzeon continued to be low with global sales of US$ 266.8 million in 2007, a growth of 7 percent compared to 2006. While the brand's sales outside of the US and Canada registered growth of 24 percent over 2006, sales in the world's most lucrative pharmaceutical market, US and Canada, declined by 7 percent.⁴⁷

Some analysts argued that Roche's pricing strategy for Fuzeon was at the root of the brand's consistent poor sales performance since it was launched in 2003.

Roche launched Fuzeon, the first injectable anti-HIV drug, in the US and the European market in 2003. The drug was targeted at treatment-experienced patients⁴⁸ with evidence of viral replication⁴⁹ despite ongoing therapy. It was to be used in combination with other anti-HIV drugs...

44] HIV (Human Immunodeficiency Virus) is the virus that causes AIDS. A person infected with HIV is called HIV positive. In the long run, HIV leads to AIDS.

45] F. Hoffmann-La Roche, Ltd., headquartered in Basel, Switzerland, one of the world's top ten pharmaceutical companies.

46] In 1999, Trimeris and Roche formed a collaboration to develop and commercialize Fuzeon and its successor drug (T-1249) on a global scale. Under a collaboration agreement, Trimeris and Roche would share the profits (or losses) from the US sales of Fuzeon, while Roche would pay royalties to Trimeris on the European sales of this drug. (Source: Sabine Vollnmer, “New Prescriptions for AIDS Drug Fuzeon Fall,” www.hivandhepatitis.com, October, 2003.)

47] “Trimeris Reports 2007 FUZEON(R) Sales Results,” www.news.moneycentral.msn.com, January 29, 2008.

48] Patients who had had experience of all the other three classes of drugs for HIV.

49] Viral replication is the term virologists use to describe the act of producing offspring or multiplying of viruses during the infection process in the target host cells.


Fundamentals of Marketing Management Workbook Workbooks Collection	Case Studies in Marketing - Vol. II Case Study Volumes Collection	Fundamentals of Marketing Management Textbooks Collection