Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: PUBLIC RELATIONS SEGMENT
CHOICE 3 COMPONENT: SET A PRICE CAP
| No. | SIC | Year | Notes |
| 1 | 2834 | 2001 | Mylan Labs and some U.S. Senators want to ignore Bayer's patent on Cipro in order to keep up with its demand during the Anthrax scare. In response, Bayer has cut the price in half to sell to the government and has tripled the production rate. |
| 2 | 2834 | 2007 | Record profits and prices for pharmaceutical companies producing lifesaving cancer drugs may trigger a backlash. Some companies are seeking to avoid this. Amgen announced that its cancer drug Vectibix would be priced at $8000 a month but patients would receive it free after co-payments exceeded 5% of their adjusted gross income. |
| 3 | 2834 | 2007 | In the U.S., Genentech capped the price of its cancer drug Avastin at $55,000 annually. Patients often stay on the drug for long time. The drug has healthy margins which allows the company to cut costs for the patients. |
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