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Selected Case

published: 24 Jun 2013

  • Topic: Marketing
  • Industry: Pharmaceuticals, drugs
  • Region: Asia

Abstract:
Rencell is a targeted therapy against metastatic renal cell cancer, which significantly prolongs disease-free survival. However, Rencell's international wholesale price of $1,000 for one month of treatment makes the drug unaffordable for many patients in China. What pricing strategy should Axios International, a healthcare consultancy, recommend to Paracelsus, the large biopharmaceutical company which markets Rencell?

Pedagogical Objectives:
Pricing strategy for a life-prolonging medicine in a country where few patients can afford to pay the international price. Key concepts: - ability to pay, affordability - market access - price discrimination, differentiated pricing - corporate social responsibility

Keywords:
Pharmaceutical, Pricing, Price Discrimination, Market Access, China, Emerging Country, Cancer, Corporate Social Responsibility


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