Metabical: Pricing, Packaging, and Demand Forecasting Recommendations for a New Weight Loss Drug

Metabical is a new weight loss drug from Cambridge Sciences Pharmaceuticals intended for moderately overweight individuals. In anticipation of final FDA approval, the senior director of marketing, Barbara Printup, prepares for the product launch and must make several critical decisions. First, she must select the optimal packaging size for the drug which typically requires a 12-week course of treatment. Next, she must determine the appropriate pricing. Since most insurance companies do not cover weight-loss medications, price has a direct impact on the sales forecast. To establish the initial demand forecast, Printup considers three approaches based on different assumptions. Her final recommendations must consider long term profitability and meet the company's desired return on investment.The case includes a quantitative assignment for students.