Question

Medfield Pharmaceuticals

1. What is the financial value that might be created if Medfield decides to pursue the Fleximat reformulation as described in the case?

Answer 1

Solution:

Reformulation stands to be the idea of reformation wherein medication is totally reconfigured and become completely different from the already existing medication due to which it is easily approved by FDA and provided a new patent. The strategy taken into consideration under this case is to make alteration in the shape of the pills and not in the medicine and its formulation. The financial impact would be sustainable growth of 2 percent rate in 8 years, drop in 50 percent sales after expiration of patent, initial cost amounting to $35 million and $25 million on a yearly basis thereafter for a period of 5 years.