Case Study

Medi-Cult: Pricing a radical innovation

13 pages
March 1999
Reference: IMD-5-0537

“Medi-Cult: Pricing a Radical Innovation” is a case that highlights the issues involved in the launch of an infertility product and procedure, which allows women to become pregnant without having to undergo unpleasant hormone stimulation or experience dangerous side-effects. In bringing its product to market, Medi-Cult, a small biotechnology company, must deal with regulatory constraints, larger competitors, and the challenges of introducing a new product into the local and global marketplace. Questions raised are: Should the product be priced according to its perceived value? Should Medi-Cult pursue a penetration or market skimming strategy in pricing the new product? How will the contribution margin be affected if a global, regional, or multinational pricing strategy is chosen? What are the ethical issues in pricing pharmaceuticals?

Keywords
Pricing, New Product, International Marketing, Biotechnology
Settings
Global
1998
Type
Field Research
Copyright
© 1999
Available Languages
English
Related material
Teaching note
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