The Medicines Company
The Medicines Company Case Write-Up: Terence Cho, Felipe Duarte, Aleks Loiko, Robert Shaw, and James Wang
Section 4, Group 10
Medicines Company’s drug, Angiomax, outperforms heparinHeparin, but requireincurs a significantly higher price costs to produce. This , makesing the drug difficult to attractively price towards hospitals. This difficulty in pricing stems from a poor positioning strategy for Angiomax which does not maximize the perceived value (PV) that the drug provides to its key customer segments. Therefore, Medicines Co., must develop a positioning strategy that maximizes the perceived value of Angiomax to a key customer segment. To develop a positioning strategy, Medicines Co. must first determine what the critical characteristics of its key customer segmentsemsnt (doctors, hospital administrators, and hospital pharmacists) value in an anticoagulant (Appendix A). Medicines Co. should then determine where Angiomax and heparin fall based on these characteristics. This will determine areas where Angiomax should compete against heparin when positioning itself. From this, Medicines Co. should develop a positioning statement that highlights Angiomax’s strengths for one of itsits most compatible customer segments – in this case, doctors. The positioning statement for doctors would be “Angiomax outperforms Hheparin in high-risk patients resulting in significantly fewer complications while performing angioplasty procedures”. The focus should be on doctors because there is significantof the high overlap between Angiomax’s benefits and what doctors’ values highly in an anticoagulant. Additionally, by providing these doctors with materials (Appendix B) that quantifies the cost savings from reduced complications in high-risk patients, Medicines Co. further bridges the gap between the true economic value (TEV) and the PVperceived value that doctors have for Angiomax.
This proposed solution is the best because it focuses on what adoctors key customer segment’
Section 4, Group 10
Medicines Company’s drug, Angiomax, outperforms heparinHeparin, but requireincurs a significantly higher price costs to produce. This , makesing the drug difficult to attractively price towards hospitals. This difficulty in pricing stems from a poor positioning strategy for Angiomax which does not maximize the perceived value (PV) that the drug provides to its key customer segments. Therefore, Medicines Co., must develop a positioning strategy that maximizes the perceived value of Angiomax to a key customer segment. To develop a positioning strategy, Medicines Co. must first determine what the critical characteristics of its key customer segmentsemsnt (doctors, hospital administrators, and hospital pharmacists) value in an anticoagulant (Appendix A). Medicines Co. should then determine where Angiomax and heparin fall based on these characteristics. This will determine areas where Angiomax should compete against heparin when positioning itself. From this, Medicines Co. should develop a positioning statement that highlights Angiomax’s strengths for one of itsits most compatible customer segments – in this case, doctors. The positioning statement for doctors would be “Angiomax outperforms Hheparin in high-risk patients resulting in significantly fewer complications while performing angioplasty procedures”. The focus should be on doctors because there is significantof the high overlap between Angiomax’s benefits and what doctors’ values highly in an anticoagulant. Additionally, by providing these doctors with materials (Appendix B) that quantifies the cost savings from reduced complications in high-risk patients, Medicines Co. further bridges the gap between the true economic value (TEV) and the PVperceived value that doctors have for Angiomax.
This proposed solution is the best because it focuses on what adoctors key customer segment’