Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • July 2001 (Revised August 2005)
  • Case
  • HBS Case Collection

Medicines Company, The

By: John T. Gourville
  • Format:Print
  • | Language:English
  • | Pages:18
ShareBar

Abstract

It is early 2001 and the Medicines Co. just received FDA approval to market Angiomax, a blood thinner to be used during angioplasties and heart procedures. It is intended to be a better alternative to Heparin, an 80-year-old drug that costs less then $10 per dose. The company believes it can sell Angiomax for a much higher price than Heparin--but how much more? Angiomax also represents the first of several drugs being developed under a rather unique business model. The company is in the business of "rescuing" drugs that other companies have given up on--i.e., they purchase or license the rights to drugs that other companies have halted development on, with the intent of completing the development process and bringing the drug to market. With the success of Angiomax, the company feels that this business model has been validated.

Keywords

Business Model; Change Management; Decision Choices and Conditions; Cost Management; Price; Product Marketing; Product Launch; Product Development; Risk and Uncertainty; Health Industry; Pharmaceutical Industry

Citation

Gourville, John T. "Medicines Company, The." Harvard Business School Case 502-006, July 2001. (Revised August 2005.)
  • Educators
  • Purchase

About The Author

John T. Gourville

→More Publications

More from the Author

    • August 2021
    • Faculty Research

    The London 2012 Olympic Games Video Supplement

    By: John T. Gourville
    • November 2019
    • Faculty Research

    Pricing in a Digital World (2019)

    By: John T. Gourville
    • August 2019
    • Faculty Research

    Apex Ski Boots

    By: Kate Barasz and John T. Gourville
More from the Author
  • The London 2012 Olympic Games Video Supplement By: John T. Gourville
  • Pricing in a Digital World (2019) By: John T. Gourville
  • Apex Ski Boots By: Kate Barasz and John T. Gourville
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College