Baycol/Lipobay: A Prescription for Trial

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

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 On course for €1 billion sales, the product is withdrawn worldwide in response to reports of a number of deaths associated with its use.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