Case Introduction This case study focuses Burroughs Wellcome and their drug Retrovir. Retrovir is a drug that treats AIDS and AID-related complications. In 1987, Burroughs Wellcome obtained approval from the FDA to market azidothymidine (AZT), also known as Retrovir, as a treatment for AIDS. Retrovir was the only kind of drug on the market. Because of this, many critics accused Burroughs Wellcome of price-gouging, as the price of Retrovir was $188 for a hundred 100mg capsules sold to wholesalers. The president of Burroughs Wellcome, T.E Haigler, defended the high price, stating it was due to uncertainty in the market, the possibility of new drug therapies, and profit margins created by new drugs. Even though Retrovir’s price was dropped 20 percent in December 1987, and 20 percent more in September 1989, due to the House of Representatives launching an investigation, there was still pressure to lower the price. The big question faced in this case is what is Burroughs Wellcome’s next move regarding pricing?
The Cost of AIDS and AIDS Treatments The origin of AIDS can be traced back to 1959 in Zaire, but it wasn’t until the 1980s where AIDS was discovered that it can be transmitted by bodily fluids and that HIV operates by destroying the T-4 cell, which makes people vulnerable to infections. This was an important as it showed retroviruses such as HIV can cause other diseases. In 1986 companies started to research the cost of AIDS and how to fight AIDS. The number of cases rose from 5,992 in 1984 to around one million by 1990. Treatment was very expensive, as the lifetime costs of the average person was between $70,000 to $141,000. As a cure was needed, companies starting pouring research & development into HIV and AIDS-related cases around 1987. Retrovir was one drug, while another company, Bristol Myers, released DDI, which was less toxic to users than Retrovir. Other companies were running clinical trials, and it was determined that one company would have a prescription drug on the market by 1991. Burroughs Wellcome Overview and How they Created Retrovir
Burroughs Wellcome is located in England. Their primary business is selling human healthcare products, prescription and nonprescription. The two main
Many have accused that Food and Drug Administration is not aggressively monitoring drugs prices, the FDA is in charge of regulating devices and drug production. Big Pharma spends billions of dollars annually on direct-to- consumer advertising which entitles manipulative strategies (4). The theory behind such good progress is the company attracts doctors, scientist, and other health related personnel’s. Medical research teams and doctors conduct extensive research with funds from Big Pharma. Even though many accuse Big Pharma for not following their mission statement it has not restricted them from purchasing their prescriptions medications. Big Pharma a company with many tactics and strategies, have been hiring former government workers whom have authoritative links to gain political influence. Currently, they have hired, 36 who worked for a member of Congress, 13 who worked for a federal agency, 2 who worked for the White House (4). With influenced members from Congress, they use their connection to reach their company goals. Unfortunately, U.S law permits drug manufacture companies to set prescriptions drugs prices without any restriction from the FDA. On the other hand, other countries set a limit on what companies can charge bases on the benefit of the drug (4). There are many hidden facts, which Big Pharma does not reveal; for example, the company spends double the amount of advertising then they do on research. Persuasion is the key to pharmaceutical industry, paying physicians/surgeons to incorporate their names on research articles, with the intent of getting published in
Other opponents charge that the high prices of drugs aren’t examples of price gouging at all, but necessary increases for drug makers to recoup costs of research and development. Yet a Health Affairs study shows otherwise: enough money is made by US drug companies that they could cover research and development and still save “US patients, businesses, and taxpayers approximately $40 billion” per year, if they operated like the rest of the world.
As I have read the case it was presented that in January of 1990, Burroughs Wellcome executives were under continued pressure to reduce the price of Retrovir, a drug which had been found to be effective in the treatment of acquired immune deficiency syndrom (AIDS) and human immunodeficiency virus (HIV). After careful review of the data and the case I have come up with the recommendation for the company to maintain the current price of Retrovir.
It is often cited that the HIV/Aids epidemic that hit the United States in the 1980’s (though there is some evidence that it started even before then), came into light due to several high profile incidents and the eventual loss of several thousand lives. Many believe that due to
HIV and AIDS have affected millions of people throughout the world. Since 1981, there have been 25 million deaths due to AIDS involving men, women, and children. Presently there are 40 million people living with HIV and AIDS around the world and two million die each year from AIDS related illnesses. The Center for Disease Control estimates that one-third of the one million Americans living with HIV are not aware that they have it. The earliest known case of HIV was in 1959. It was discovered in a blood sample from a man in Kinshasa, Democratic Republic of the Congo. Looking further into the genetics of this blood sample researchers suggested that it had originated from a virus going back to the late 1940’s or early 1950’s. In 1999,
Prescription drug prices are on the rise in the United States. Currently, the United States does not implement a price control on prescription drugs. Every day the supply and demand for prescription drugs fluctuates. Pharmaceutical companies produce drugs that are necessary for survival. Therefore, it is necessary for research and development to continue in the United States. Those suffering the effects of exorbitant prices must do so until a generic form of a prescription drug is produced. Once approved by the FDA, new drugs will make their appearance on the market and patients will no longer suffer financially. Until then, it is necessary for pharmaceutical companies to price their drugs based on the idea of supply and demand. This produces the profit used to fund research. Price controls discourage innovation. If a price control were set in place, of course the price of prescription drugs would decrease. However, the development of new drugs decreases with it. Today’s generation would benefit from lower prices, while future generations would suffer from the loss of drug innovation.
There were two pharmaceutical companies that were looking for ways to expand globally to position themselves in a competitive advantage from their competitors. One was located in the United States, which was Eli Lilly and
It wasn’t until 1989 that scientists discovered the presence of HIV in the blood in AIDS patients. Scientists then transferred their efforts towards treating HIV. This spurred a research on a global scale as this breakthrough in the now HIV/AIDS epidemic has come to the light. The now FDA and CDC were major
disease. In 1983 and 1984, the virus that causes AIDS was isolated and in 1988 it was
According to a report published in the February 1998 edition of “Nature”, scientists identified what they believe is the earliest case of AIDs in a man from the Congo in 1959. (Lerner and Hombs 39) By the end of the year 1980, 80 men would have been diagnosed with at least of the opportunistic infections that are a characteristic of AIDs. (Lerner and Hombs 40) AIDs cases in the 1980s increased dramatically not only around the world but in the United States, primarily in larger cities like Los Angeles, New York City and San Francisco. The numbers of AIDs diagnoses and deaths spiraled out of control throughout the 1980s and towards the end of 1989 there were 117,500 cases of AIDS reported and 89,000 related deaths.(Lerner and Hombs 54) In the
Acquired Immune Deficiency Syndrome (AIDS) was first recognized as a new disease in 1981 when increasing numbers of young homosexual men succumbed to unusual opportunistic infections and rare
The AIDS epidemic in the 1980s, consisted entirely of deaths, illnesses and most of all fear, changing the way society viewed gay men. Being that it was only happening to homosexuals and everyone became super homophobic and believed that the disease was a cause of being gay until it started happening to women too. This affected the entire medical metaphysics in society on what is considered safe methods of having sex and health precautions as well. Before the 1980s hit HIV was thought to originate form Kinshasa which is in Congo. In the 1920 HIV crossed between chimpanzees to humans on the Democratic Republic of humans.(Avert 1). AIDS is caused by HIV and is the last stage of HIV and can lead to death. It attacks every single
The reputation of the biopharmaceutical industry continues to be battered. Some of this has been earned as with the illegal detailing of drugs or questionable sales and marketing practices, but the industry has been tarnished by the immoral behaviors of others. The most recent example of this is Martin Shkreli, the CEO of Turing Pharmaceuticals and a former hedge fund manager. Turing acquired Daraprim, a drug that has been available for over 60 years to treat a life-threatening disease, toxoplasmosis. After acquiring the drug, Shkreli promptly raised the price of a tablet from $13.50 to $750, a 5,500% increase (NY Times, 2015).
Many people think that the origin of HIV, the AIDS virus, procures from natural evolutionary event. But, there is a theory called “cut hunter theory” in which a human, allegedly, African native, be given a infected splash while fighting with a chimpanzee carrying a similar to HIV virus. Although, most recent research holds that the origin of HIV and AIDS could never have happened this way. Others says that AIDS started in 1980s in the united states of America, but this was just when people first became aware of AIDS and it was a new health
This history of HIV/AIDS as a blurry timeline before the 1980’s since that was around the time reports came in which eventually become an HIV report. The origin of HIV can be traced back to the early part of the century. Some believe that in the 1920’s chimpanzees from the Congo came into contact with humans (Avert, 2016). Though reports were not identified as HIV until the 1980’s, the belief that HIV was already scattered throughout four other continents may have been incident (Avert, 2016). Even though for the past 30 years the world has been diligently working to find a cure and pushing prevention, we are still struggling each year with increasing diagnosis. The beginning of HIV did end with lots of death, but now with our improved antiviral medication there is hope for many.