Reduce Price to Improve Revenues and Margins
CHOICE 1: SELECT THE OBJECTIVE OF THE PRICE REDUCTION
2. Retain Customers
Avoid adverse public action against the company which would reduce company revenues
| No. | SIC | Year | Notes |
| 1 | 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. |
| 2 | 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. |
| 3 | 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. |
| 4 | 2834 | 2001 | GlaxoSmithKline PLC and Secretary of Health and Human Services Tommy Thompson will announce today a prescription-drug discount program that will give low-income seniors on Medicare who don't have health benefits discounts on all the company's outpatient drugs. The program will be administered by Express Scripts Inc., a pharmacy benefit manager. The program is part of a growing effort by pharmaceuticals companies to address a growing chorus of complaints from seniors that lifesaving therapies are too expensive. Seniors whose income is less than three times the Federal Poverty limit but too high to make them eligible for Medicaid could participate in the Orange Card Program. The program will offer average discounts of 30%. |
| 5 | 7011 | 1994 | Hyatt Hotels and ITT Sheraton recently eliminated surcharges on all local and credit-card calls–but only in special "business" or "club" class rooms. These rooms cost more to stay in, anyway. |
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