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Metabical-Case Study

In: Business and Management

Submitted By dazzled86
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APRIL 14, 2010

JOHN A. QUELCH
HEATHER BECKHAM

op yo Metabical:
Pricing, Packaging, and Demand Forecasting for a
New Weight-Loss Drug

In April 2008, after 10 years of testing and $400 million in research and development costs,
Cambridge Sciences Pharmaceuticals’ (CSP) newest prescription drug, Metabical (pronounced Mehtuh-bye-cal), was about to receive its coveted Food and Drug Administration (FDA) approval. CSP was an international healthcare company with over $25 billion in sales in 2007. The company, based in Cambridge, Massachusetts, focused on developing, manufacturing, and marketing products that treated metabolic disorders, gastrointestinal diseases, and immune deficiencies, as well as other chronic and acute medical conditions. Metabical was part of a strategic initiative that would allow
CSP to enter the $3.74 billion market for weight-control products in the United States.1

tC

CSP’s chief marketing officer, Bernard Long, said of the new product:

No

Metabical is revolutionary. It will be the first and only prescription drug to receive FDA approval to meet the needs of the millions of individuals struggling with moderate weight-loss goals. Previous prescription weight-loss drugs had negative side effects that, in the agency’s judgment, outweighed the benefits provided to individuals who were not considered obese.
Metabical will be approved for use by those looking to shed between 10 to 30 pounds. Initial reviews from the medical community indicate a strong endorsement of Metabical. Our product will offer moderately overweight adults a medically proven, effective method to reach a desirable weight and improve their overall health.

1 According to Mintel Interational Group’s Weight Control Products - US - March 2007 Report, total U.S. retail sales of weight

control products in 2007 were estimated…...

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