Angiomax Case Study

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The healthcare industry is extremely different than any other industry in the business world. This, along with the benefits and pricing issues, make this case, on Angiomax, an interesting one to analyze. In determining pricing, positioning, and target markets, it is important to not only understand the product but also look at competition and the chain of users, or the buyers, decision makers, and users, as all are very different in this case, as opposed to many industries when all three of these roles may be portrayed by the same individual(s).

Before pricing can be looked at, it is important to determine who the product should be targeted towards. There were a number of studies done by Biogen (the company that created Angiomax) of angioplasty patients which showed that the obvious target should be very high risk patients (patients who had previously had heart attacks within two weeks) due to the significant improvement those patients experienced upon taking doses of Angioplasty as opposed to Heparin, the standard medication which was much less expensive but not as effective. Angioplasty did not show as much significant improvement over Heparin for those lower risk patients.

The pricing structure should be based on Angiomax’s value propositions. For the end user, or those high risk patients, Angiomax gives the benefits of (1) more predictable results than Heparin, (2) much lower risk of death, and (3) less prevalent complications and thus less time in the hospital than Heparin patients. However, clearly, the buyer or the hospitals, have more power than end users in the decision making. The value proposition for the lead users, or buyers, is as follows: (1) more predictable results than those of Heparin, (2) Fewer costs of addition complications that are standard with Heparin, (3) Fewer complications from Angiomax leads to better reputation of doctors and hospital, and (4) fewer complications leads to more open beds which means more patients can be served...
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