Eco 561 Wk 4
Maximizing Profit in Pharmaceutical Sales
Economics 561
Mostafa Baladi
28 April 2013 Introduction In the realm of pharmaceutical drug sales, there are many players in the market. Many of these companies have a large inventory of drugs that they manufacture. The subdivision of the pharmaceutical market that draws the most revenue is oncology medications. Many companies will specialize in drugs for only one type of cancer, or sometimes with only one drug period. The cost of research and development in this field is much higher than any other disease subdivision. With many companies focusing on specific treatment plans there is a real opportunity to corner the market. The sale of oral medication is on the rise, by getting ahead of the generic sales of these oral agents, the company can establish itself at the forefront of contemporary cancer treatment. The following will point out ways to boost revenue, determine maximizing profit strategies, and creating barriers to establish this company as the leader in oncologic pharmaceutical sales.
Oral Chemotherapy Cancer is one of the leading contributors to death rates in the United States. The battle with cancer is often laced with numerous trips to the doctor’s office, the laboratory for blood work and the infusion center for intravenous treatment. The constant running around that these patients do adds a lot of unneeded stress on the patient and the patients’ family. Many of these patients would be much happier if they were able to receive their treatments at home. However, due to how volatile and dangerous some of the intravenous chemotherapy regimens can be, patients do not have that option to receive their medications at home with only one healthcare provider present for an emergency. Recently many drug companies are attempting to create a better lifestyle treatment plan for their target patients. They are focusing on developing their IV chemotherapies into pills. This lets the
Economics 561
Mostafa Baladi
28 April 2013 Introduction In the realm of pharmaceutical drug sales, there are many players in the market. Many of these companies have a large inventory of drugs that they manufacture. The subdivision of the pharmaceutical market that draws the most revenue is oncology medications. Many companies will specialize in drugs for only one type of cancer, or sometimes with only one drug period. The cost of research and development in this field is much higher than any other disease subdivision. With many companies focusing on specific treatment plans there is a real opportunity to corner the market. The sale of oral medication is on the rise, by getting ahead of the generic sales of these oral agents, the company can establish itself at the forefront of contemporary cancer treatment. The following will point out ways to boost revenue, determine maximizing profit strategies, and creating barriers to establish this company as the leader in oncologic pharmaceutical sales.
Oral Chemotherapy Cancer is one of the leading contributors to death rates in the United States. The battle with cancer is often laced with numerous trips to the doctor’s office, the laboratory for blood work and the infusion center for intravenous treatment. The constant running around that these patients do adds a lot of unneeded stress on the patient and the patients’ family. Many of these patients would be much happier if they were able to receive their treatments at home. However, due to how volatile and dangerous some of the intravenous chemotherapy regimens can be, patients do not have that option to receive their medications at home with only one healthcare provider present for an emergency. Recently many drug companies are attempting to create a better lifestyle treatment plan for their target patients. They are focusing on developing their IV chemotherapies into pills. This lets the
References: General Information about Myelodysplastic Syndrome: National Cancer Institute (NCI), (2013). Website, http://www.cancer.gov/cancertopics/pdq/treatment/myelodysplastic/ Vallerand, A. H., & Sanoski C. A., Vidaza (2013) Drug Information, Davis Drug Guide (13th Ed.) Unbound Medicine Inc. Charlottesville, VA Cytoxan, Benadryl Purchasing Information, McKesson Specialty Pharmacy Price Guide. (2013) McKesson Specialty Pharmacy, La Vergne, TN. McConnell, C. R., Brue, S. L., & Flynn, S.M. (2009). Economics: Principles, Problems, and Policies (18th Ed.). Boston, MA: McGraw-Hill Irwin.