Econ 207 Intermediate Microeconomic - Metabical Weight-Loss Drug

Khuder Doyod

11/05/2015

ECON 207 Intermediate Microeconomic

Assignment #6: Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug

Overview of Metabical weight-loss drug

In this case it’s about weight-loss drug who has an obesity which means fat wants to lose their body fats in few months or weeks. According to the case there is Cambridge Sciences Pharmaceuticals (CSP) which making new prescription drug Metabical and Barbara Printup is one of the senior director of marketing for CSP who takes responsible and focused for developing, manufacturing, marketing products in the United States. Metabical is innovated drug that can receive approval from Food and Drug Administration (FDA). The CSP wants to predicting that Metabical drug will be to approved by consumers who wants to lose 10-30 pounds. This new drug has reduced down the negative side of effects if compare to Alli and other prescription weight loss drugs. Metabical is the first prescription drug approved by FDA specifically for overweight individual with BMI (Body Mass Index) of 25 to 30. In business strategy and marketing structure their purpose is to attract more consumers that will repurchase the product not so harm for body organization. The CSP had searched and planned many different ways, also tested out their prescription drug that use for 4 weeks. The most complicated and hard thing were to forecasting the price of products, and release out the right accurate cost of manufacturing specifically for packaging.

Analysis of the Case study

Obesity is rising across the USA and earning money by the company doesn’t really protect and care against it. By 2008, over 65% of the 230 million adults in USA were considered overweight, obese, or severely obese. The previous drugs were not healthy for obese adults and teenagers because it has many negative side effects. According to the Alli that was approved by the FDA for weight-loss use, it’s described to use one pill with every meals. Negative side effects of Alli included gastrointestinal conditions such as loose stools, increased defecation, intocontinence, abdominal pain, and liver damage. Then FDA regulators were taken a reports from patients that their liver damaged and any other organs has damaged very well. From the clinical trials those weight loss drugs has accused and put prohibited supplements because it has chain to make other cancer for the obese individuals then who takes responsible for it? In early 2007, the Federal Trade Commission required manufacturers of popular OTC weight-loss drugs TrimpSpa, XenaDrine EFX, CortiSlim and One-A-Day WeightSmart to pay $25 million to settle allegations that the products weight-loss claims were unsubstantiated.