Baycol/Lipobay: A Prescription for Trial

Published 07 Jan 2006
Reference 5385
Topic Marketing
Industry Pharmaceuticals
Region Global
Length 24 page(s)

Initially available only in low doses, sales of the aggressively priced Baycol/Lipobay anti-cholesterol drug pick up when the product is marketed at higher doses, especially in the large US market. On course for €1 billion sales, the product is withdrawn worldwide in response to reports of a number of deaths associated with its use. The withdrawal results in public criticism of the pharmaceutical industry and Bayer, many lawsuits against Bayer, and a decline in the sales and profitability of its pharmaceutical division.

Teaching objectives

The case can be used to discuss: - the role of product safety for industry and company reputation, and the legal and financial consequences of product liability issues - risk management: identifying and managing product safety associated risks - the tradeoffs between product and financial performance and safety risks

  • RD0706
  • AR2006
  • AR0506
  • HMI
  • Pharmaceutical and Medical Device Sectors