Metabical

Pricing, Packaging and Demand Forecasting

 Case Summary

 In April 2008, after 10 years of testing and $400 million in Research and Development costs, Cambridge Sciences
Pharmaceuticals prescription drug Metabical was about to receive its FDA approval
 Approved for use by only those people looking to shed weight between 10 to 30 pounds
 Barbara Printup was in charge of managing upcoming January 2009 launch of Metabical in the United States
 Printup had to made several critical decision to decide the Optimal Package size for the drug
 Establish initial Demanding Forecast for the production in the first 5 years
 Decide the Pricing Model from the three initial model and ensure that the desired ROI(minimum 5% within 5
years) of the company is met
  Two categories of Prescription Diet drugs, appetite suppressants and
fat absorbing blockers

 However these drugs have various side-effects such as liver damage,

Competitive kidney stones, severe stomach pain and gall bladder disease

 Because of this it was prescribed for use only by obese and severely

Landscape
obese (BMI>=30)

 Prescription drug option was also available (BMI between 25 to 30)

 Over the counter drug Alli was approved by FDA for weight loss use
(but over 30 reports of liver damage were being reviewed)

 All other OTC drug were categorized as dietary supplement

  FDA banned the purchase or sale of ephedra because of sudden
cardiac arrest and health risk thereby hurting the industry
credibility

Competitive  Due to lack of regulation and safety concerns associated with

OTC weight loss drug people gravitated to other options such as

Landscape Diet plans, Exercise plans, Weight Management Support

Program/Meeting, and Pre-packaged food delivery services

 Thus creating attractive opportunities for CSP

 Metabical was well positioned to capture share from individuals

who were dissatisfied with current offerings
 Packaging

 Typical blister type packaging

 Days of week and number of weeks planned
 Effective & easy to understand
Recommendations
Thank You!!
Presented by Group 4

Harshita Kushwaha MBA19193

Ishwar Arjun Lohar MBA19194
Pratik Jain MBA19214
Devansh Sharma MBA19189
Sumit Anand MBA19234
Deva Nikhil MBA19188
Tanmay Wadhwa MBA19236