FM 005 Walden University Economics & Drugs Case Study

FM005 Assessment Instructions

Review the details of your assessment including the rubric. You will have the ability to submit the assessment once you submit your required pre-assessments and engage with your Faculty Subject Matter Expert (SME) in a substantive way about the competency.

Overview

In this Assessment, you will use information from the case scenario below, along with the supporting documents provided, to demonstrate your ability to apply economic concepts to make recommendations for organizational decisions.

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.

Access the following to complete this Assessment:

Reflect on the criteria provided in the Rubric.

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

GDP Per Capita

Health Expenditure Per Capita

Life Expectancy at Birth, Total (Years)

Breast Cancer Drug – Comparison Chart

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 StatisticsAnnual Costs of Cancer Care—Cancer Prevalence and Cost of Care ProjectionsChemo 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.

Part II: Compare International Healthcare Systems to Develop an International Market Entry Strategy

It is your job to develop a market analysis for four different healthcare markets with unique insurance systems. These four analyses will be contained within one 10- to 11-slide presentation to the board of directors. Your analysis will serve as a basis for deciding which country to market Comanapracil:

Germany

United States

Ghana

Brazil

Create your presentation as follows:

The first slide will be an analysis of the relationship between spending on healthcare per capita and life expectancy in each country. Refer to the learning resources to create a chart comparing the spending on healthcare per capita with the life expectancy in each country. Underneath the chart, on the same slide, address the question: Is there a relationship between life expectancy and healthcare spending?

Next, based on what you have learned about the healthcare systems of Germany, the United States, Ghana, and Brazil, create four slides (one for each country) that summarize how each healthcare system is structured.

Next, create another four slides (again one for each country). Each of these slides should summarize your findings from conducting a SWOT analysis for each country (that is, identify the economic strengths, weaknesses, opportunities and threats) associated with marketing Comanapracil in each country.

Create one to two slides recommending which two countries are most attractive for marketing Comanapracil and why.

Your board has shown a particular interest in the German market. In order to market your drug in Germany successfully, you must be approved by the German Institute for Quality and Efficiency in Health Care (IQWIG). Create two to three slides, which argue for the importance of why your drug should be approved by the IQWIG. Address the following issues:

How much of a gain in health outcomes will this drug provide?

Do other drugs provide similar effectiveness in treating this disease?

How many people will benefit from this drug? Explain why some people will benefit from the drug more than others.