The Medicines Company

Major Issues: The Medicines Company (TMC) has developed its first FDA approved drug for commercial sale-Angiomax. The company needs to devise a profitable marketing strategy to launch its product and begin generating revenues. To achieve this goal, TMC must determine Angiomax's optimal position, target market, pricing, and distribution strategy. In the long-run, even a highly successful launch of Angiomax may not provide enough revenue to cover the company's fixed costs and generate returns demanded by investors. Their long-term success calls for growing the specific products in its pipelines to ensure sustainable profitability.

Strategic Alternatives: (1) To position Angiomax as an alternative to Heparin with universal use, mirroring the distribution channel to Heparin. In the long term, continue with current business model of acquiring “abandoned” products in late stages of development. (2) Position Angiomax to target all angioplasty patients and maintain a price premium. Concentrate the sales and distribution channels to focus on the 700 centers that are responsible for 92% of all angioplasty surgeries. Change business model to incorporate early stage development of drugs to maintain product pipeline-traditional approach. (3) Position Angiomax to target “very high risk” and “high risk” patients, maintain a price premium and look for joint ventures with other companies for long term sustainability product development.

Recommendation: TMC should target the “very high risk” and “high risk” angioplasty patients as a product positioning strategy. The value Angiomax can offer to these end users are straightforward. As a result Angiomax niche position it allows TMC to command a premium price of $400, which is in line with industry norms. TMC should hire Innovex for their expertise and existing relationships to educate the 700 targeted centers. Lastly, target pharmaceutical companies to help share research and development