Burroughs Wellcome

Q1 . In 1990, Burroughs Wellcome was spending substantial resources on finding a better interference for AIDS than what they currently had (which is zidovudine). Some officials in Burroughs Wellcome feared that if Burroughs Wellcome did not decrease the price of AZT by 20% in 1990, then a hap from the public put across behind negatively equal the gross sales of Burroughs Wellcomes separate 2 products (Zovirax and Sudafed) and whatever potential AIDS drug that they energy be/ severalize in the next (in former(a) words, customers may stop acquire the aforementi unmatchedd BWs current/potential drugs owing to the negative advancement of BW). Do you think their fears are healthy founded? Give reasons for your answer. In my opinion, Burroughs fears that the backlash from public will negatively impact the sales of its other two products (Zovirax and Sudafed) and that of each potential AIDS drugs they might invent/discover in future are well founded. In the read scenario AZT is the only drug operable for treatment of AIDS. The benefits of AZT stimulate a direct impact on the patients choice of sustenance; as a guide patients desire for the treatment is high. Since AZT is the only drug which crime syndicate out extend patients life expectancy and boost their tolerant system, its importance to the patients is paramount.

Hence, in the unequal run the negative promotional material will not have any impact on the sales of AZT and BWC can go ahead without any further cut in the price of AZT, and recover small-arm of its past-costs and collect some monetary resource for investme nt in R&D for future drugs. But since on! e or more drugs is expected to become approval by the end of 1991 AZTs timeframe as a monopolist is likely to be a short one. However, when it comes to other BWCs other two products (Zovirax and Sudafed)... If you exigency to get a full essay, run it on our website: OrderCustomPaper.com

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