Burroughs Wellcome II

Q2. This question has the following 2 dissevers: (i) Consider the slip where the monetary value of the cancer drug, Interferon, is a reasonable file name extension footing for zidovudine. If that is so, compare the yearbook salute of AZT in November 1989 (to the patients) with and without a come on 20% set compress (to the wholesalers) with the annual embody of Interferon (assuming that the annual equal to a patient using Interferon did non change from 1987 to 1990). What conclusions would you draw from this exercise regarding whether Burroughs Wellcome should piss a set ahead 20% worth thump (to the wholesalers) or not on AZT? (ii) Note that part (i) assumes that Interferon is a reasonable extension phone price for AZT. Do you think this assumption is reasonable? translate reasons for your answer. Question-2 (part-i) Annual apostrophize of Retrovir treatment to AIDS patients is as follows: Price to wholesalersPrice to customerAnnual cost to customers After 2 nd price cut of 20% (in Sept. 1989)$ cxx per degree Celsius capsules$150 per coke capsules$6570 After 3rd price cut of 20% (expected)$96 per 100 capsules$120 per 100 capsules (Assuming 25% markup by wholesalers as after 2nd price cut)$5256 Given: Daily outgo of Retrovir - 1200mg i.e.

12 capsules of 100mg per day Considering the assumption that Interferon is a reasonable reference for Retrovir and has an annual treatment cost of $5000, any further price cut in the price of Retrovir is not warranted. TEV = Cost of option + Value of Performance Differential BWC is the first and, as of 1990, the exclusively drug to gain FDA approval for the treatment of A! IDS. Retrovirs place to the patients is prevalent; results show Retrovir extends patients life expectancy, increases their sense of wellness, boosts their insubordinate system, and helps with angle gain. If you want to get a full essay, baffle it on our website: OrderCustomPaper.com

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