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Final Case Study Outline: Merck Pharmaceuticals (Keytruda®, Pembrolizumab)
· Title Page
· Title of the Paper- Focused on Merck Pharmaceuticals, particularly their blockbuster drug Keytruda® (Pembrolizumab)
· Name
· Correspondence
· Abstract
· Brief summary of key sections of the paper
· Keywords
· Introduction
· General overview of Merck Pharmaceuticals, their spectrum of pharmaceutical development
· Define what makes Merck newsworthy and their Research and Development Pipeline
· Focus on Merck’s strategies, overall vision, goals, business objectives
· Overview of Blockbuster drug- Keytruda® (Pembrolizumab); PD-1 inhibitor immunotherapy for treatment of various oncology indications (melanoma, non-small cell lung cancer, urothelial carcinoma, metastatic head and neck squamous cell carcinoma, advanced gastric carcinoma, Hodgkin’s lymphoma, solid tumors)
· Focus on Merck’s Competitors with similar products:
· Roche (comparator product Tecentriq® or Atezolizumab)
· Bristol Meyers Squibb (comparator product Opdivo® or Nivolumab)
· Oligopoly vs. Pure Competition: what makes Merck maintain its competitive streak and what is the market structure
· Regulatory authorities: focus on Merck’s compliance programs:
· Food and Drug Administration (FDA)
· U.S. Department of Health and Human Services
· Code on Interactions with Healthcare Professionals created by the Pharmaceutical Research and Manufacturers of America (PhRMA)
· Section 1: Demand Analysis Concepts:
· Apply the Law of Demand and Purchasing Power Effect:
· Evaluate the real value and demand for Ketruda® and similar new immunotherapy drugs with indications in multiple tumors to increase overall survival, improve morbidity and mortality, progression of disease, and quality of life
· Target Marketing (Oncology drugs and demand), Positioning, Subsitution
· Strategic Advertising
· Apply concepts of price elasticity of demand
· Section 2: Production and Cost Analysis Concepts:
· Assess the blend of labor vs. capital intensity in Merck Pharmaceuticals
· Assess fixed and variable costs
· Apply concepts of Returns to Scale, Diminishing Marginal Returns (if applicable)
· Section 3: Strategy Analysis Concepts:
· Value-based pricing
· Life Cycle Pricing: from clinical research with Keytruda® where it is provided free of cost to research patients to the FDA approval post-marketing and group pricing to hospitals (340-B pricing, patient assistance programs)
· Niche pricing
· “What they got right” Analysis:
· CEO’s vision and overall contribution to success: “The mission of Merck and other pharmaceutical companies at the time (1950s) was to take care of patients and profits would follow” to new mission statements
· Quality and consistency in delivery of products and services
· Conclusion:
· Summary of the most important concepts as applicable throughout the course/class and their applicability to Merck, with blockbuster product like- Keytruda®
· References:
· All references cited throughout the paper and a complete listing with full citations at the end
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