Pricing Fuzeon – Cost of Innovation

Pricing Fuzeon – Cost of Innovation

Understand the issues in drug pricing, particularly for anti-AIDS drugs.

This case is about Fuzeon, an innovative ‘first of its kind’ drug used for the treatment of HIV/AIDS. The drug was developed by Trimeris and marketed by Roche. Though Fuzeon was considered a ‘breakthrough’ drug, its price was very high. The case discusses the reasons as to why the company had decided to price the drug at a premium. Fuzeon’s pricing also raised ethical concerns as it was priced out of the reach of people who needed it the most. The case also discusses the challenges faced by Trimeris and Roche in marketing this drug.    

Issues:

  • Understand the issues in drug pricing, particularly for anti-AIDS drugs.

  • Understand the risks that pharmaceutical companies face in developing and launching a new product in the market.

  • Understand the challenges faced by companies in marketing a new product at a premium price.

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