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The Rise and fall of Baycol/Lipobay

Author: Angelmar, Reinhard INSEAD Area: MarketingIn: Journal of Medical Marketing, vol. 7, no. 1, January 2007 Language: EnglishDescription: p. 77-88.Type of document: INSEAD ArticleNote: Please ask us for this itemAbstract: This case study describes the history of Bayer's anti-cholesterol medicine Baycol/Lipobay from its early development to its withdrawal from the market. Initially available only in low doses, sales of the aggressively priced Baycol/Lipobay picked up when the product was marketed at higher doses, especially in the large US market. On course for $1 billion sales, the product was suddenly withdrawn worldwide in response to reports of a number of deaths associated with its use. The withdrawal resulted in public criticism of the pharmaceutical industry and the company, multiple lawsuits against Bayer and a decline in sales and profitability, and strategic repositioning of its pharmaceutical division.
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INSEAD Article Europe Campus
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This case study describes the history of Bayer's anti-cholesterol medicine Baycol/Lipobay from its early development to its withdrawal from the market. Initially available only in low doses, sales of the aggressively priced Baycol/Lipobay picked up when the product was marketed at higher doses, especially in the large US market. On course for $1 billion sales, the product was suddenly withdrawn worldwide in response to reports of a number of deaths associated with its use. The withdrawal resulted in public criticism of the pharmaceutical industry and the company, multiple lawsuits against Bayer and a decline in sales and profitability, and strategic repositioning of its pharmaceutical division.

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