Medicines Co. Harvard Case Solution & Analysis

It is early 2001 and drugs company has just received FDA approval to market Angiomax, a blood thinner that will be used during angioplasty and heart procedures. It is designed to be the best alternative to heparin, 80-year-old drug that costs less than $ 10 per dose. The Company believes that it can sell Angiomax at a much higher price than the heparin - but how much more? Angiomax is also the first of several drugs developed under a rather unique business model. The company is in the business of "saving" drugs that other companies have abandoned - that is, they buy a license or rights to drugs that other companies to stop development, with the intent to complete the development and attraction of drugs on the market. With the success of Angiomax, the Company believes that this business model has been confirmed.
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by John T. Gourville Source: HBS Premier Case Collection 18 pages. Publication Date: July 3, 2001. Prod. #: 502006-PDF-ENG

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