Jordan Pettinger MKTG 4020 April 3rd, 2018
The Medicines Company
Clinical trials indicate that Angiomax treatment is more beneficial than Heparin for both
who are unsatisfied, or weakly satisfied with the effects of Heparin, and have influence on pharmacists who would be willing to pay a premium for a more effective drug. The company would be able to utilize profits from Angiomax sales upfront, and eventually drop their prices as newer drugs enter the market and eventually diminish the value of Angiomax.
The Medicine Company should focus on effectively communicating their value
proposition of Angiomax to customers including their patent that makes it impossible for competitors to directly mimic their drug, and sell it to hospitals at a lower price, until 2010. The Medicines Company has key evidence that implies that Angiomax is a premium product needed
by 33.33%, reduces the instances of heart attacks in angioplasty by 27%, the need for a repeat angioplasty procedure is reduced by 15%, and major instances of major bleeding decreased by 66%.
These above statements can be leveraged by sales and marketing teams that Meanwell hired, and discussions with both pharmacists and cardiologists in targeted hospitals which account for 92% of angioplasty procedures. Marketing efforts should target pharmacists while focusing on the economic benefits that Angiomax bring to hospitals, and doctors who are focused on reducing side effects, and are looking for overall effectiveness of the drug. The Medicines Company should continue to focus on low-cost, yet effective educational efforts via channels in which there has already been success, including medical publications, trade shows, and weekend getaways.
The Medicines Company should use a customer value-based pricing approach in order to address the value added to high, and very high-risk patient procedures, as opposed to a cost plus, or competitive parity pricing approach. Although cost plus pricing is an easy pricing approach used for B2B marketing, it wouldn't allow the Medicines Company to accurately assess the demand for Angiomax, and would ultimately lead to lost profits. A competitive parity pricing strategy would result in lowering the price below the cost to product Angiomax, in order to meet Heparin's low cost of $2. This allows the Medicines Company to remain competitive in pricing, and would be best suited to create value to doctors, by reducing the chances of additional costs from angioplasty, allowing hospitals to continue to raise profits from the predetermined insurance reimbursement. At a price of $498.39 per patient, the Medicines
Angiomax.
Thoughts:
Table 1 (Appendix) indicates that replacing Heparin wffAngiomax= Hospital Savings of $714.67/patient 1 Patient requires 1.45 doses of Angiomax $714.67 + ($8ff4 doses of Heparin)ff1.45 (average dose Angiomax)=$498.39ffpatient (ANGIOMAX)=Recommended Price