Turing Pharmaceuticals Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Turing Pharmaceuticals Case Study Solution

Q1: The price of Daraprim:

The price of the product was raised by more than 5000% from 13.5 dollars to 750 dollars for a pill of Daraprim which resulted in the inaccessibility of the drug for the common and mid-income groups. It will reduce the acceptability of the product by its customers as the objective of the company has changed from easy access to customers to merely earning profits.The company claims that the profits will be used for research and development for innovative solutions for the disease.

Moreover, this price increase will not be beneficial for the company in the long run because the company can only earn super ordinary profits in the short term as the product will eventually be opposed by the government and regulatory authorities of the US.Pricing should be rational enough to generate long-term benefits on the basis of its objectives and values along with the ful filment of its corporate social responsibility of making drugs easily available for patients to reduce death rates.

Q2: Image repair:

Turing Pharmaceuticals can repair its image by showing a transparent and clear image in front of the customers which are small pharmaceutical companies and distributors as well as the doctors who prescribe treatments for the patients and increase the sales of the products by communicatingtheirsignificancefor recovering from the disease.

However, the company can repair its image by reducing its price and comparing it with the other companies who have increased pricing with a higher rate than the company’s pricing. It will be easier for the company to defend its price hike and make it more reasonable to earn a profit after the recovery of its costs of research and development. It can also rebuild its image by creating a strategic fit between the intense procedure to develop the drug and pricing charged to its customers by providing them with better payment plans as well as providing them better access to its products.

Q3: Impact of scandal

Yes, the negative attention of scandal will result in causing other pharmaceutical companies to evaluate further the way they raise their prices because of the sudden price hike in the price of Daraprim from $13.5 to $750 per dose. This resulted in the price rise by other companies too after the scandal. The price increase of around 2000% was reported for a 60-year-old drug for tuberculosis by Rodelis Therapeutics.

This gave rise to the normal practice for other pharmaceuticals to purchase or acquire the famous brands of drugs for saving their research and development cost and maximize their profits by the increase in price. The company purchased the rights to a rare drug for producing the cycloserine which was priced at $480 for 30 pills.It was increased by 2150% to touch the price of around $10800. This increasing trend in prices of the product resulted in the buy back of the product by the foundation and its pricing was set at a more reasonable rate of around $1050 which was greater than the earlier set price because the company was unable to generate profits and maintain its cost structure at the price of $480.

Turing Pharmaceuticals Harvard Case Solution & Analysis

Another pharmaceutical company also evaluated its pricing after the scandal of Daraprim for its product and the company name was Retrophin .The company evaluated its decision for the price of Thiola from the price of per tablet $1.50 to $30 for the drug used for the cure of kidney pain. This resulted in fund hedging of drugs rather than merely carrying on the pharmaceutical business.................

This is just a sample partial work. Please place the order on the website to get your own originally done case solution.