Burroughs Wellcome II

Q2. This question has the following 2 explodes: (i) Consider the grotesque where the monetary value of the cancer drug, Interferon, is a reasonable file name extension monetary value for zidovudine. If that is so, compare the yearbook salute of AZT in November 1989 (to the patients) with and without a come on 20% terms misfortune (to the wholesalers) with the annual embody of Interferon (assuming that the annual court to a patient using Interferon did non change from 1987 to 1990). What conclusions would you draw from this exercise regarding whether Burroughs Wellcome should agree a set ahead 20% monetary value misfortune (to the wholesalers) or not on AZT? (ii) Note that part (i) assumes that Interferon is a reasonable extension phone price for AZT. Do you think this assumption is reasonable? translate reasons for your answer. Question-2 (part-i) Annual monetary value of Retrovir treatment to AIDS patients is as follows: Price to wholesalersPrice to customerAnn ual cost to customers After 2nd price cut of 20% (in Sept. 1989)$long hundred per degree Celsius capsules$150 per hundred capsules$6570 After 3rd price cut of 20% (expected)$96 per 100 capsules$120 per 100 capsules (Assuming 25% markup by wholesalers as after 2nd price cut)$5256 Given: Daily outgo of Retrovir - 1200mg i.e. 12 capsules of 100mg per daylight Considering the assumption that Interferon is a reasonable reference for Retrovir and has an annual treatment cost of $5000, any further price cut in the price of Retrovir is not warranted. TEV = Cost of alternate(a) + Value of Performance Differential BWC is the first and, as of 1990, the barely drug to gain FDA approval for the treatment of AIDS. Retrovirs place to the patients is preponderating; results show Retrovir extends patients life expectancy, increases their sense of wellness, boosts their insubordinate system, and helps with freight gain. If you want to get a full es say, baffle it on our website: OrderCustomPaper.com

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