The Medicines Company Presentation Final Original

7/25/2019 The Medicines Company Presentation Final Original

1/24

The Medicines

CompanyUGBA 106 Marketing FinalWritten Analysis of a Case

Stephanie ZauWenwan Sophie! "ang

"i #u Gra$e! Chen

%arena &ulanont


2/24

SWOT AnalysisStrengths

Uni'ue (usiness )o*el+a$'uires*rugs in late stage *e,elop)entClear an* $on$ise $riteria forsele$ting a new *rug to a$'uire-ower pro*u$t ./% $osts

Short (reake,en perio*s afterpro*u$t laun$high return on in,est)ent ratio ifpro*u$t is su$$essful

WeaknessesWeak (a$kup pro*u$t C&203an* 4S2135!4n,estors ha,e little $on*en$e7ro*u$t laun$h takes an a,erageof 10 years

ery spe$i$ seg)ent of a target)arket89pensi,e $o)pare* to generi$*rugs%i:$ult )arket entry (e$ause ofhigh pri$e

OpportunitiesAging populationUnite* States is the )ostprota(le *rug )arket7res$ription *rug (usiness

e9pan*ing

ThreatsGo,ern)ent an* )anage* $areorgani;ation pressuring *rug$o)panies to lower *rug pri$esGrowth in generi$ *rug )arket


3/24

The Challenges

1! &o $on,in$e hospitals that Angio)a9 is a(etter alternati,e to eparin

=! &o $orre$tly analy;e the initial sales $on*ition

when (reaking into the )arket>! &o for)ulate an e?e$ti,e )arketing strategy

that *i?erentiates Angio)a9 fro) eparin an*to fa$ilitate a*option in hospitals

3! &o persua*e hospital a*)inistrators to a$'uire

Angio)a9 in a hospital6! &o seg)ent an* target )ost in@uential an*

prota(le hospitals! &o instill $on*en$e in in,estors! &o *e,elop strategies to a$'uire a pro*u$ti,e

*rug pipeline


4/24

Recommendations

1! 8)phasi;e the a*,antages of the *rug rst(efore pu(li$i;ing the pri$e

! %e,elop a uni'ue selling propositionD positionAngio)a9 as the )o*ernE no2i))une2rea$tionanti$oagulant lowering the risk of heart atta$kE)aor (lee*ing an* *eath

3! Break into the )arket (y initially targeting

*o$tors6! &arget large an* )e*iu) hospitals! 7ro,i*e spe$i$ infor)ation to in,estors that

show hospitals will a$'uire their *rugs! 4n$lu*e a )ore sophisti$ate* s$reening pro$ess


5/24

Overview of Product

Angioma!

"escription

A (loo* thinning *rug E or anti$oagulantE that re*u$es the likelihoo* ofartery (loo* $lots 4t is spe$i$ally *e,elope* for Hhigh risk patientsun*ergoing a (alloon angioplastyI 4t $an treat patients with heartatta$ksE unsta(le anginaE eparin 4n*u$e* &hro)(o$ytopenia 4&!an* patients who ha,e un*ergone $oronary artery surgeryCost of goo*s sol*D >0 per *ose

Strengths8?e$ti,e in =0 )inutes%oses are He9a$tingI an* H$rispIJo i))une rea$tion7er$entage of patients

e9perien$ing )aor (lee*ing is 1K=of that of eparinLs8li)inate *eath rate.e*u$e* rate of heart atta$k an*nee* for a repeat angioplasty0 of ti)eE re'uires only 1 *ose

WeaknessesCost 0ti)es higher than eparinE thegeneri$ alternati,eAlternati,e is a wi*ely use* *rug


6/24

Promotion# Place and Price

Promotion Place Price

4nno,e9D )arketingser,i$es r)

A,erage of 3 years ofe9perien$e

.elationships with*o$tors an*phar)a$ists

A$a*e)i$ ournal arti$les7resentations at tra*eshows

Me*i$al #ournalsighlight short$o)ings ofeparinWeeken* getaways+$reate a*,o$ates in the)e*i$al $o))unity

Wor* of )outh

ospitalsFo$us on 00angioplasty$enters

%i,i*e* into 3sales regions&argeting 3>00K1=00! of)e*i$al $entersthat perfor)

angioplasties

Un*eter)ine*>0 *ollars topro*u$eBefore a$'uiring

Angio)a9E Biogenproe$te* thatAngio)a9 woul*$ost 100 per *oseto pro*u$e with an

i)plie* selling of

1000 per *ose


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Customers# Competition andColla$oratorsCustomers Competition Colla$orators%o$torsospital 7har)a$istsospitalA*)inistratorsHigh risk patients

un*ergoing a (alloonangioplastyI

eparin+)ost wi*elypres$ri(e* anti2$oagulant in a$ute$oronary hearttreat)ent

Co))o*ity *rugSol* (y )any*i?erent)anufa$turers< a *ose to pro*u$e10 pri$e per *ose

Main short$o)ingsDUnpre*i$ta(ilityigh risk of(lee*ingA*,erse rea$tions

UCB Biopro*u$tspro*u$ing Angio)a94nno,e9+pro,i*ingsalespeople with ana,erage of 3 years

e9perien$e an* ha,e$onne$tions with*o$tors an*phar)a$ists in the)e*i$al in*ustry


8/24

Challenge %&

Angioma! 'eparin

&akes into e?e$t in =0)inutes

Jo i))une rea$tion

.e*u$e* risk of (lee*ing

&ake into e?e$t in < to =hours

A*,erse rea$tion

igh risk of (lee*ing

Outcome within ( "ays ofTreatment

'eparin )*(+, Angioma! )*-.,

%eath 03 00

eart Atta$k 36 =0

Jee* for a .epeat Angioplasty =3

89perien$e* Maor Blee*ing 11

Ta$le A Phase /// Results for 01ery 'igh Risk2Patients

&o $on,in$e hospitals that Angio)a9 is a (etter alternati,e to

eparin


9/24

Challenge %&

Using Angio)a9 will (e less $ostly thaneparin .e*u$e $ost of $o)pli$ations

.e*u$e patientLs hospital stay

A**itional $osts in$urre* fro)$o)pli$ations eart Atta$kD 000

%eath CostsD 000

&hese $osts are JN& rei)(urse* (yinsuran$e $o)panies


10/24

Challenge %+

Outcome within ( "ays ofTreatment

'eparin)+#&3&,

Angioma!)+#&-&,

%eath 0High Risk:

00!P>0!05

&o $al$ulate a** patientssu?ering fro) $o)pli$ationsEwe apply the following for)ulaD


11/24

Challenge %+&o pri$e Angio)a9 at a )utually (ene$ial $ost

Fro) the $aseE the total nu)(er of angioplasty patients is 00E000patients Sin$e the Me*i$ines Co)pany only in,estigates 5

Fro) &a(le A an* BE we $al$ulate* the *i?eren$e of patients thate9perien$e* so)e $o)pli$ation while using eparin or Angio)a98a$h of these patients will $ost E000 to the hospital &he *i?eren$ein the nu)(er of patients with the a(o,e $o)pli$ations (etween usingeparin an* Angio)a9 is $al$ulate* (elowD

!i"erence in n#$%er of atientsO 1 0=< Q 3> O

E000

patient


12/24

Challenge %+PSee Challenge R1 &a(le for nu)eri$al *ata

for referen$e&henE we assu)e that ea$h patient re'uire* 1 *ose of eparin an* thatea$h ,ial of eparin $ontains 1 *ose &he a,erage *ose of Angio)a9 is1>3 *oses

&'g. dose of &ngio$a per patientO 0!1 *ose! Q =0!


13/24

Pricing :;+< per dose

Pros

Cons

With Angio)a9E $ost of ea$h operation will (e 5E510E with insuran$epaying hospitals at a @at rate of 11E300 &hereforeE the hospital will notlose any )oney

&he hospitals will gain >6Kpatient >66 2 >


14/24

Challenge %*&o $orre$tly analy;e the initial sales $on*ition when (reaking into

the )arketCurrent>acts

Company Adoption Pro?le

Markete* asHalternati,eto heparinI

ar* to sell in initial )onths *ue to la$k of e,i*en$ein results an* hospital representati,e *ou(ts%o$tors will see Angio)a9 as an e:$ient an* safenew alternati,e fro) short2run results hospitals willsee Angio)a9 as a $ost e:$ient alternati,e in thelong2runE as they see less $ost in$urring in$i*entsMay e,en take a *ip in sto$k pri$es *ue to in,estorskepti$is)7re*i$te* in$rease in sales after a few )onths aftertargeting larger hospitalsE positi,e *ata woul*in@uen$e other $onsu)ers7ossi(ly )ore in,estors will start taking interest inMe*i$ines CoFirst yearE Me*i$ines Co woul* pre*i$t a net loss

Pro@ected Trend >irst ear );Buarters,


15/24

Challenge %;&o for)ulate an e?e$ti,e )arketing strategy that *i?erentiates

Angio)a9 fro) eparin an* to fa$ilitate a*option at hospitals>acilitating Adoption 4reak into the market $y targeting doctorsand pharmacists ?rst

/nnove! "octorApproach

7ro,i*e free Angio)a9sa)ples for *o$torsost presentations onthe (enets of swit$hingto Angio)a9 for hospital*o$tors&he 7ush 8?e$tD Free

sa)plesKknowle*ge ofAngio)a9 in*u$e*o$tors to persua*ephar)a$ists an*a*)inistrators to$onsi*er Angio)a9

/nnove! PharmacistApproach

7ro,i*e logisti$s an*soli* *ata on how )u$h)oney they $an sa,e (yswit$hing to Angio)a94n a**itionE re)in* the)that patients woul* lowertheir risks of heart atta$kE

*eathE nee* for a repeatAngioplasty an* )aor(lee*ing&he 7ush 8?e$tD -owerphar)a$euti$al in,entory$ost in*u$es phar)a$ists

to persua*ea*)inistrators to

/nnove!Administrators

ApproachShow $on$rete*ataKresear$h resultson how )u$h they $ansa,e an* how )u$hthey $an lower theirpatientsL risk of heart

failuresBun*le the o?er with'ualityassuran$eK$usto)erser,i$e


16/24

Angioma!Ds 5niEue SellingPropositionPosition Angioma! as the modern# nosideeFect anticoagulant

lowering the risk of heart attackGma@or $leedingGdeath

eparin Angio)a9

-ess 8?e$ti,eD takes < or =hours to assure su$$essful *rug

a*)inistration

More 8?e$ti,eD only takes =0)inutes for it to take e?e$t

7ossi(ility of 4))une .ea$tion Jo 4))une .ea$tionSi*e 8?e$ts!

.isk of 7atient %eathKeartAtta$kKJee* for .epeate*AngioplastyKMaor Blee*ing

-ower risk of 7atient %eathKeartAtta$kKJee* for .epeate*AngioplastyKMaor Blee*ing

Unpre*i$ta(ilityre'uires $lose)onitoring when a*)inistering

7re*i$ta(lere'uires little )onitoringwhen a*)inistering Angio)a9!

igh .isk of Blee*ing -ow .isk of Blee*ing


17/24

Challenge %3

&9 "octors +9 Pharmacists

Uses the *rug Jee* to pri)arily fo$us on

the *o$torsT Sales representati,es

)ust e)phasi;e the(enets of Angio)a9

Why it is a (etter $hoi$e+e*u$ate on a*,antages

Shoul* JN& )entionnegati,es ie high $ost!

Nn$e $on,in$e *o$torsEthen will ha,e a lea* tophar)a$ists

Carries the *rug

a,e annual (u*get

Are rewar*e* for )eetingan* (eating the (u*get

Must ustify $ost of new *rugto hospital a*)inistratorsan* get the a**e* e9pense

a**e* into the (u*get Jee* to show hospital that

will a$tually (e sa,ing)oney (y using Angio)a9

&o persua*e hospital a*)inistration to a$'uire Angio)a9 in a

hospital


18/24

Challenge %3

*9 'ospital Administrators

Appro,e the *rug forongoing use in the hospital

Most i)portantT

%e$i*es if it )akese$ono)i$ sense toa$'uire the *rug

Appro,al fro) *o$tors an*phar)a$ists is $ru$ial for

*oor to a*)inistratorsMust show that the *rug will not only (enet the patientsan* *o$tors )e*i$allyE (ut also the hospital nan$iallyAngio)a9 will lower any potential a**itional $ostsAngio)a9 will (e less $ostly than eparinT

See 7ri$ing Sli*e for nu)eri$al e,i*en$e


19/24

Challenge %-&o seg)ent an* target )ost in@uential an* prota(le

hospitalsSegmentation Targeting

Harge 'ospitals )+


20/24

Challenge %-Ioal 'ave Angioma! replace 'eparin for Angioplasty

ProceduresHarge 'ospitals

JSMedium 'ospitals

JSSmall 'ospitals

KO LL

-arge hospitals are *i:$ult to (reak intoEhowe,er the rewar* will (e highE (e$ause on$e

we (reak into the )arketE Angio)a9 will re$ei,ei))e*iate re$ognition as s)all an* )e*iu)hospitals look up to the large hospitalsMoreo,erE on$e we get the *ealE the sheer si;e oflarge hospitals ensure ,olu)eE an* $onse'uently)ore )argins

By targeting -arge an* Me*iu) ospitals an*su$$essfully $on,erting the) into Angio)a9usersE the pull e?e$t a?e$t S)all hospitals the600 )e*i$al $enters! in that they woul* ha,e to$on,ert as well *ue to pressures fro) patientsan* general )e*i$al tren*

&argeting these hospitals also ren*er us

S)all hospitalsare not as

attra$ti,e as largehospitals an*)e*iu) hospitals&he a)ount ofti)eE e?ortE an*)oney re'uire* to

$on,ert s)allhospitals outweighthe prot )argins!we $an get (yselling to the)Angio)a9


21/24

Challenge %(

1! 7ro,i*e in,estors with spe$i$ 'uantitati,ean* 'ualitati,e infor)ation that suggestsa$'uiring a $ertain *rug will ha,e signi$ant(enetsE nan$ially an* )e*i$allyE to hospitals

=! Up*ating in,estors on $urrent stages of *rugsan* progress of the $o)pany 8sta(lishes a $onne$tion (etween the in,estors

an* the $o)pany Up*ates will eli)inate any *ou(ts in,estors )ay

ha,e

&o instill $on*en$e in

in,estors


22/24

Challenge %

1! A )ore sophisti$ate* s$reening pro$ess to in$rease the possi(ility ofsu$$ess

Currently $riteria only fo$uses on ti)e an* )oney

A** )ore spe$i$ re'uire)ents to e9isting $riteria

4n$lu*e )ore in*ustry se$tor analysis in their *rug sele$tion pro$ess

Analy;e the (ig pi$ture

7erfor) e:$ient nan$ial analysis to (etter pri$e future *rugs

=! Fin* new *rugs with se,eral usages that $an generate a**itional prot Angio)a9 is an e9a)ple of this

&este* not only as treat)ent for angioplastyE (ut also heart atta$kE4&E unsta(le angina an* $oronary artery (ypass

>! Su(2li$ensing rights of faile* *rugs to other $o)panies to in$reasere,enue

Mini)i;e e9pen*iture 7artially prot fro) upfront an* royalty fees

&o *e,elop strategies to a$'uire a pro*u$ti,e *rug pipeline


23/24

Challenge %

/S&3. CT1


24/24

Conclusion and Takeaways

1! 4n*ustry se$tor analysis is $ru$ial to thesu$$ess of a pro*u$t on the )arket Assess )ultiple areas su$h as $o)petitionE

$onsu)ers an* o,erall )arket

=! A strong pro*u$t pipeline is i)portant for the$o)pany (e$ause it re*u$es the risk of failure

.e*u$ing risk (y *istri(uting risk a)ong se,eral*i?erent pro*u$ts

>! Aspe$ts of the pro*u$t )ust (e )utually(ene$ial to the $o)pany an* the $onsu)er

The Medicines Company Presentation Final Original

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