CASE STUDY
Case facts
DIASTOP
- From 2006 – 2011, BioPasture invested a large amount of its profit from a previously developed drug LOBLOPRIN and was created to cure Type 1 & 2 Diabetes
- It would have major advantages over alternative drugs
- It was made with patients in mind and designed to have fewer side effects than LOBLOPRIN.
- Trials were conducted on the drug in 2009 and 2010 with real patients of 10 batches with 100 patients in each batch (10×100=1000 patients) with 45 patients developing heart-related complications and of the 45 patients, 3 patients suffered severe consequences and were hospitalised. The result from this trial was as strong as that of LOBLOPRIN even though both drugs are for different uses.
- Despite the results from the trials, FDA approved it saying it was not worse than the most of the drugs in this category. But before the approval, FDA told BioPasture to perform additional tests with 100 30year olds with moderate cases of diabetes by prescribing different doses to different individuals.
- The second set of tests ordered by the FDA came back showing there was no relationship between the daily dosage and the issue of side effects and this proved that there was no relationship between complication and dosage
PROBLEM
- The problem was if BioPasture should release DIASTOP or take it back for further research and development due to the fact that there might be a chance that the drug could exceed the percentage allowed for severe consequences and hospitalisation and would be recalled.
OBJECTIVE
- To launch a drug that was safe for patients.
- To maximize profit in time before the patent protecting BioPasture expires and 2019.
ALTERNATIVES
- Release the drug and risk the event of a Recall happening
- Take the drug back to the lab for further improvement via research and development.
CRITERIA
- Acquiring the necessary technologies for improving DIASTOP
- Profit maximization, Time of Launching the drug
- Reputation
- Recall
EVALUATION OF ALTERNATIVE
WEIGHT | CRITERIA | LAUNCH NOW | LAUNCH LATER (R&D) |
2 | Acquiring the necessary technologies for improving DIASTOP | 1 | 0 |
2 | Profitability, Time of Launching the drug | 1 | 0 |
3 | Reputation | 0 | 1 |
3 | Recall | 0 | 1 |
10 | 4 | 6 |
DECISION
Based on the analysis carried out, DIASTOP should do more research and improve the drug to for more assurance that the drug won’t have life threatening side effects