Manufacturers

Investment gross margin

R&D $400,000,000.00 Option 1
Overhead $1,200,000.00 Option 2
Marketing Budget $23,000,000.00 Option 3
Total $424,200,000.00

FIRST APPROACH

US Population 209000000 209000000

Overweight Individuals 34% 71060000

Trying to lose weight 35.00% 24871000.00
Comfortable with
weight loss drugs 15% 3730650

Gross margin $24,8

Percentage
Year Customer Captured First supply
Captured
1 373065.00 10% $9,252,012.00
2 559597.50 15% $13,878,018.00
3 746130.00 20% $18,504,024.00
4 932662.50 25% $23,130,030.00
5 1119195.00 30% $27,756,036.00

Gross Margin $58,13

Percentage
Year Customer Captured Captured First Supply
1 373065.00 10% $21,686,268.45
2 559597.50 15% $32,529,402.68
3 746130.00 20% $43,372,536.90
4 932662.50 25% $54,215,671.13
5 1119195.00 30% $65,058,805.35
 Gross Margin $74,8
Percentage
Year Customer Captured First Supply
Captured
1 373065.00 10% $27,905,262.00
2 559597.50 15% $41,857,893.00
3 746130.00 20% $55,810,524.00
4 932662.50 25% $69,763,155.00
5 1119195.00 30% $83,715,786.00

SECOND APPROACH

US Population 209000000 209000000

Overweight Individuals 34% 71060000

Ready to request
prescription 12% 8527200
Gross margin $24,8
Percentage
Year Customer Captured First Supply
Captured
1 852720.00 10% $21,147,456.00
2 1279080.00 15% $31,721,184.00
3 1705440.00 20% $42,294,912.00
4 2131800.00 25% $52,868,640.00
5 2558160.00 30% $63,442,368.00

Gross Margin $58,13

Percentage
Year Customer Captured First Supply
Captured
1 852720.00 10% $49,568,613.60
2 1279080.00 15% $74,352,920.40
 3 1705440.00 20% $99,137,227.20
4 2131800.00 25% $123,921,534.00
5 2558160.00 30% $148,705,840.80

Gross Margin $74,8

Percentage
Year Customer Captured First Supply
Captured
1 852720.00 10% $63,783,456.00
2 1279080.00 15% $95,675,184.00
3 1705440.00 20% $127,566,912.00
4 2131800.00 25% $159,458,640.00
5 2558160.00 30% $191,350,368.00
 $24.80
$58.13
$74.80

APPROACH

Ideal Target

Third Approach
Year

1
2
margin $24,8 3
Second Supply Full Cycle Total
4
$5,551,207.20 $1,110,241.44 $15,913,460.64 5
$8,326,810.80 $1,665,362.16 $23,870,190.96
$11,102,414.40 $2,220,482.88 $31,826,921.28
$13,878,018.00 $2,775,603.60 $39,783,651.60
$16,653,621.60 $3,330,724.32 $47,740,381.92 Third Approach
Year
Total $159,134,606.40
ROI -62.49% 1
2
argin $58,13 3

Second Supply Full Cycle Total 4

$13,011,761.07 $2,602,352.21 $37,300,381.73 5
$19,517,641.61 $3,903,528.32 $55,950,572.60
$26,023,522.14 $5,204,704.43 $74,600,763.47
$32,529,402.68 $6,505,880.54 $93,250,954.34
$39,035,283.21 $7,807,056.64 $111,901,145.20 Third Approach
Year
Total $373,003,817.34
ROI -12.07% 1
 2
Margin $74,8 3
Second Supply Full Cycle Total
4
$16,743,157.20 $3,348,631.44 $47,997,050.64 5
$25,114,735.80 $5,022,947.16 $71,995,575.96
$33,486,314.40 $6,697,262.88 $95,994,101.28
$41,857,893.00 $8,371,578.60 $119,992,626.60
$50,229,471.60 $10,045,894.32 $143,991,151.92 Conclusion : Choose the second approach w
Total $479,970,506.40 manner, so the company is not only able to
of choosing The second approach with Ret
ROI 13.15% above Alli, and premium factoring Prescrip
missing out on getting maximum price. In t
to go to the health care providersfor a pres

APPROACH

Second Supply Full Cycle Total

$12,688,473.60 $2,537,694.72 $36,373,624.32

$19,032,710.40 $3,806,542.08 $54,560,436.48
$25,376,947.20 $5,075,389.44 $72,747,248.64
$31,721,184.00 $6,344,236.80 $90,934,060.80
$38,065,420.80 $7,613,084.16 $109,120,872.96
Total $363,736,243.20
ROI -14.25%

Second Supply Full Cycle Total

$29,741,168.16 $5,948,233.63 $85,258,015.39

$44,611,752.24 $8,922,350.45 $127,887,023.09
 $59,482,336.32 $11,896,467.26 $170,516,030.78
$74,352,920.40 $14,870,584.08 $213,145,038.48
$89,223,504.48 $17,844,700.90 $255,774,046.18
Total $852,580,153.92
ROI 100.99%

Second Supply Full Cycle Total

$38,270,073.60 $7,654,014.72 $109,707,544.32

$57,405,110.40 $11,481,022.08 $164,561,316.48
$76,540,147.20 $15,308,029.44 $219,415,088.64
$95,675,184.00 $19,135,036.80 $274,268,860.80
$114,810,220.80 $22,962,044.16 $329,122,632.96
Total $1,097,075,443.20
ROI 159%
 Third Approach
4300000

Gross margin $24,8

Percentage
Customer Captured First Supply Second Supply Full Cycle
Captured
1290000.00 30% $31,992,000.00 $19,195,200.00 $3,839,040.00
1505000.00 35% $37,324,000.00 $22,394,400.00 $4,478,880.00
1720000.00 40% $42,656,000.00 $25,593,600.00 $5,118,720.00

1935000.00 45% $47,988,000.00 $28,792,800.00 $5,758,560.00

2150000.00 50% $53,320,000.00 $31,992,000.00 $6,398,400.00
Total
ROI

Gross Margin $58,13

Percentage
Customer Captured First Supply Second Supply Full Cycle
Captured
1290000.00 30% $74,987,700.00 $44,992,620.00 $8,998,524.00
1505000.00 35% $87,485,650.00 $52,491,390.00 $10,498,278.00
1720000.00 40% $99,983,600.00 $59,990,160.00 $11,998,032.00

1935000.00 45% $112,481,550.00 $67,488,930.00 $13,497,786.00

2150000.00 50% $124,979,500.00 $74,987,700.00 $14,997,540.00
Total
ROI

Gross Margin $74,8

Percentage
Customer Captured First Supply Second Supply Full Cycle
Captured
1290000.00 30% $96,492,000.00 $57,895,200.00 $11,579,040.00
 1505000.00 35% $112,574,000.00 $67,544,400.00 $13,508,880.00
1720000.00 40% $128,656,000.00 $77,193,600.00 $15,438,720.00

1935000.00 45% $144,738,000.00 $86,842,800.00 $17,368,560.00

2150000.00 50% $160,820,000.00 $96,492,000.00 $19,298,400.00
Total
ROI

lusion : Choose the second approach with Retail Price $125 which have gross margin $74,8, Pricing was done in such a
ner, so the company is not only able to achieve the desire ROI but also is able to capture a larger market base, The advantages
oosing The second approach with Retail Price $125 is Moderate market penetration, Moderate consumer awareness, Price
e Alli, and premium factoring Prescription drug with FDA. Beside that the second approach have disadvantages is chance the
ng out on getting maximum price. In the second approach, Metabical can focus on individuals who were immediately willing
to the health care providersfor a prescription.
 Total

$55,026,240.00
$64,197,280.00
$73,368,320.00

$82,539,360.00
$91,710,400.00
$366,841,600.00
-14%

Total

$128,978,844.00
$150,475,318.00
$171,971,792.00

$193,468,266.00
$214,964,740.00
$859,858,960.00
103%

Total

$165,966,240.00
 $193,627,280.00
$221,288,320.00

$248,949,360.00
$276,610,400.00
$1,106,441,600.00
161%

icing was done in such a

er market base, The advantages
e consumer awareness, Price
ve disadvantages is chance the
who were immediately willing