Imprimis (C)

This case is a supplement to Imprimis (A & B). Set in 2015, it first describes Imprimis’s decision to introduce its own line of compounded eye drop medication called LessDrops. The case then examines the moral dilemma faced by CEO Mark Baum, who was struck by the problem of high drug prices in the United States. Recent, drastic price hikes on pharmaceutical drugs, such as those initiated by Turing Pharmaceuticals under CEO Martin Shkreli, had recently brought media attention to this issue. Baum believed it would be relatively easy for Imprimis to create compounded versions of many of the affected drugs, which could increase competition in the pharmaceutical industry and lessen the strain both on patients and the healthcare system as a whole. However, doing so would require the company to raise capital, strengthen its sales force, and increase its manufacturing capabilities. The decision was further complicated by the relatively low barrier to entry and by the ubiquitous nature of the drug pricing problem. Baum had to decide whether Imprimis should stick with its already successful ophthalmology business or begin the endeavor of combatting high drug prices, going up against powerful competitors in the drug industry.