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. 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: 

https://www.breastcancer.org/symptoms/understand_bc/statistics

https://costprojections.cancer.gov/annual.costs.html

https://khn.org/news/chemo-costs-in-u-s-driven-higher-by-shift-to-hospital-outpatient-facilities/

https://data.worldbank.org/indicator/NY.GDP.PCAP.CD

https://data.worldbank.org/indicator/SH.XPD.CHEX.PC.CD

https://data.worldbank.org/indicator/SP.DYN.LE00.IN

Part 1:  

You have been tasked with developing a pricing and marketing strategy for Comanapracil. As you undertake this task, refer to the following resources mentioned above:

• 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

Create a 10- to 15-slide presentation, for the board of directors, to convince them that Comanapracil is a good investment. The presentation should address the following economic issues related to the marketing of Comanapracil:

• 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 how 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.

Part 2:  

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. Begin by referring to the World Bank charts “GDP Per Capita,” “Health Expenditures Per Capita,” and “Life Expectancy at Birth, Total (Years).” Using these, 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, addressed to the IQWIG, which argue for the importance of why your drug should be covered. 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.