Explain three ways you will ensure that insurance companies pay for your drug.

Case Scenario: Launching a Cancer Drug: Comanapracil

You are a pharmaceutical executive and you are preparing a presentation for a Board of Directors. You believe that your firm, Ropache, may have developed a promising new drug, Comanapracil, which seems to arrest the progress of breast cancer for 2 years with no significant side effects. Clinical trials suggest that the drug is 100% effective for 2 years. After 2 years, tumor growth resumes at the same rate. Therefore, Comanapracil can only be used for a 2-year course, after which it loses its effectiveness.

This assessment has two-parts. Click each of the items below to complete this assessment.

Part I: Determining Pricing and Marketing Strategy for a New Drug

· You have been tasked with developing a pricing and marketing strategy for Comanapracil, which you will share in a 10 – 15 slide presentation with board of directors. As you undertake this task, be sure to address the following:

· U.S. Breast Cancer Statistics

· Annual Costs of Cancer Care—Cancer Prevalence and Cost of Care Projections

· Chemo Costs in U.S. Driven Higher by Shift to Hospital Outpatient Facilities

· Breast Cancer Drug—Comparison Chart

· Develop and present estimates for the demand for Comanapracil and the price of the drug you think the market will bear. Be sure to include the number of customers for this drug.

· Describe where and to whom you will focus your marketing efforts. For each, detail why they are important.

· Explain three ways you will ensure that insurance companies pay for your drug.

· Explain the elasticity of demand for a drug like Comanapracil. What factors could potentially change the elasticity of demand?

· Assume you are able to obtain a patent and are ready to go to market immediately. Explain the length of time for which your drug will receive patent protection, so that you are protected from competition prior to generics entering the market. Also, explain why patent protection exists in healthcare.

Note: Your presentation should provide key concepts in the slides with a full discussion as your narrative below in the speaker notes, while using the rubric for guidance to meet expectation.