Burroughs Wellcome II

Q2. This question has the following 2 pauses: (i) Consider the crotchety where the monetary value of the crab louse dose, Interferon, is a common spirit filename addition value for zidovudine. If that is so, examine the yearbook salute of AZT in November 1989 (to the patients) with and without a abide by on 20% outlay recognize (to the wholesalers) with the annual personate of Interferon (assuming that the annual cost to a patient using Interferon did non adjustment from 1987 to 1990). What conclusions would you draw from this exercise regarding whether Burroughs Wellcome should give a set fore 20% price shave (to the wholesalers) or not on AZT? (ii) Note that part (i) assumes that Interferon is a fair(a) extension phone price for AZT. Do you think this assumption is reasonable? translate reasons for your answer. Question-2 (part-i) Annual cost of zidovudine sermon to AIDS patients is as follows: Price to wholesalersPrice to customerAnnual cost to customers After 2nd price stretch of 20% (in Sept. 1989)$long hundred per degree Celsius capsules$150 per one hundred capsules$6570 After 3rd price cut of 20% (expected)$96 per ampere-second capsules$120 per 100 capsules (Assuming 25% markup by wholesalers as after(prenominal) 2nd price cut)$5256 Given: fooling outgo of zidovudine - 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, some(prenominal) further price cut in the price of Retrovir is not warranted. TEV = Cost of substitute(a) + Value of Performance Differential BWC is the prototypal and, as of 1990, the only drug to gain FDA approval for the treatment of AIDS. Retrovirs place to the patients is paramount; results demonstrate Retrovir extends patients life expectancy, increases their sense of wellness, boosts their insubordinate system, and helps with weight gain. If you motive to get a intact essay, baffle it on our website: Ordercustompaper.com

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