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Baycol/Lipobay: a prescription for trial

Author: Angelmar, Reinhard INSEAD Area: MarketingPublisher: Fontainebleau : INSEAD, 2006.Language: EnglishDescription: 26 p.Type of document: INSEAD CaseNote: Latest version available via https://publishing.insead.eduAbstract: Initially available only in low doses, sales of the aggressively priced Baycol/Lipobay anticholesterol drug pick up when the product is marketed at higher doses, especially in the large US market. On course for €1 billion sales, the product is withdrawn worldwide in response to reports of a number of deaths associated with its use. The withdrawal results in public criticism of the pharmaceutical industry and Bayer, many lawsuits against Bayer, and a decline in the sales and profitability of its pharmaceutical division.Pedagogical Objectives: The case can be used to discuss: . the role of product safety for industry and company reputation, and the legal and financial consequences of product liability issues . risk management: identifying and managing product safety associated risks . the tradeoffs between product and financial performance and safety risks.
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INSEAD Case Asia Campus
Archives
Print Consultation only BC007636
INSEAD Case Europe Campus
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Print Consultation only BC007635
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Latest version available via <a href=https://publishing.insead.edu>https://publishing.insead.edu</a>

The case can be used to discuss:
. the role of product safety for industry and company reputation, and the legal and financial consequences of product liability issues
. risk management: identifying and managing product safety associated risks
. the tradeoffs between product and financial performance and safety risks.

Initially available only in low doses, sales of the aggressively priced Baycol/Lipobay anticholesterol drug pick up when the product is marketed at higher doses, especially in the large US market. On course for €1 billion sales, the product is withdrawn worldwide in response to reports of a number of deaths associated with its use. The withdrawal results in public criticism of the pharmaceutical industry and Bayer, many lawsuits against Bayer, and a decline in the sales and profitability of its pharmaceutical division.

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