Calculate charge for the treatment

Reference no: EM1355834

If you are working at Johnson & Johnson and one of your responsibilities is to set prices for new drugs.

The firm has invented a cure for Aids and is protected by patent. The cost for the one time injection that cures the disease is $100 and includes amortization of the development cost (The $1 billion cost to develop the product is included in the $100) and the cost raw materials. Assume that insurance companies currently spend $200,000 to treat an Aids patient. Assume 20% of the world population is covered by insurance or socialized medicine.

What price do you charge for the treatment? Defend your answer.

Consider all your stakeholders. (Including your stock holders, employees, etc.)
Don't try to quantify your answer. Just tell us what you think is right.

Reference no: EM1355834

Questions Cloud

That ceo want to cut back on production of the fishing : Ralph Sampson, the company's CEO, want to cut back on production of the fishing anchor so that the company can make more yacht anchors.

Question about international strategy : What are the most important countries in which a global business should participate today, and why? Will this list of countries look different a decade from now? Explain your answer.

Exposure to video game violence in todays society : Describe issues of exposure to video game violence in today's society related to 10 year old children. What are some possible outcomes and are there any intervention strategies?

What is the lift force on the plane : Air is streaming horizontally past a small airplanes wings such that the speed is 50m/s over the top surface and 30 m/s past the bottom surface. the plane has a mass of 300 kg and a total wing area of 5 m^2(both wings).

Calculate charge for the treatment : The company has invented a cure for Aids and is protected by patent. The cost for the one time injection that cures the disease is $100 and includes amortization of the development expenses.

Production cost flow and measurement-journal entries : Edison Company manufactures wool blankets and accounts for production costs using process costing. The following information is available regarding its May inventories. Compute the cost of (a) products transferred from production to finished goods ..

International strategy - key informaiton : Would suggest that a third world developing country might be a better option to focus on especially if the government did not limit ownership and/or require a local partner.

What opportunities enabled team to accomplish its goals : What motivational theories do you think could have been used to encourage the team to be more successful? What specific rewards or opportunities would have enabled the team to accomplish its goals? Why?

International management prospective for renmin university : International Management Prospective for Renmin University - Discuss Renmin University which is located in Beijing China . The topics that should be addressed pertained

User Account

All Pages