Question

Answer to questions must be at least a paragraph long (5-6 sentences).

Grading criteria will be the following (all criteria are equal weight): Research and support (factual and logical) for your answers, appropriate application of strategic management concepts and writing grammar, clarity, syntax, and appropriate citations (if necessary).

Ah biotech

Dr. Abraham Hassan knew that he couldn’t put off the decision any longer. AH Biotech, the Bound Brook, New Jersey–based company started by this psychiatrist-turned- entrepreneur, had developed a novel drug that seemed to promise long-term relief from panic attacks. If it gained approval from the Food and Drug Administration (FDA), it would be the company’s first product. It was now time for large-scale clinical trials. But where should AH Biotech conduct those tests? David Berger, who headed up research and development, was certain he already knew the answer to that question: Albania. “Look, doing these trials in Albania will be quicker, easier, and a lot cheaper than doing them in the States,” he pointed out. “What’s not to like?” Dr. Hassan had to concede that Berger’s arguments were sound. If it did trials in the United States, AH Biotech would spend considerable time and money advertising for patients and then finding physicians who’d be willing to serve as clinical trial investigators. Rounding up U.S. doctors prepared to take on that job was getting increasingly difficult. They just didn’t want to take time out of their busy practices to do the testing, not to mention all the recordkeeping that such a study entailed. In Albania, it was an entirely different story. There were few legal or political barriers to testing drugs. And it was one of the poorest Eastern European countries—if not the poorest—with a just barely functioning health care system. Albanian physicians and patients would practically line up at AH Biotech’s doorstep begging to take part. Physicians there could earn much better money as clinical investigators for a U.S. company than they could actually practicing medicine, and patients saw signing up as test subjects as their best chance for receiving any treatment at all, let alone cutting-edge Western medicine. All these factors meant that the company could count on realizing at least a 25 percent savings (maybe even more) by running the tests overseas. So, what’s not to like? As the Egyptian-born CEO of a start-up biotech company with investors and employees hoping for its first marketable drug, there was absolutely nothing not to like. It was when he thought like a U.S.- trained physician that Dr. Hassan felt qualms. If he used U.S. test subjects, he knew they’d likely continue to receive the drug until it was approved. At that point, most would have insurance that covered most of the cost of their prescriptions. But he already knew that it wasn’t going to make any sense to market the drug in a poor country like Albania, so when the study was over, he’d have to cut off treatment. Sure, he conceded, panic attacks weren’t usually fatal. But he knew how debilitating these sudden bouts of feeling completely terrified were—the pounding heart, chest pain, choking sensation, and nausea. The severity and unpredictability of these attacks often made a normal life all but impossible. How could he offer people dramatic relief and then snatch it away?

What Would You Do?

1. Do the clinical trials in Albania. You’ll be able to bring the drug to market faster and cheaper, which will be good for AH Biotech’s employees and investors and good for the millions of people who suffer from anxiety attacks.

2. Do the clinical trials in the United States. Even though it will certainly be more expensive and time- consuming, you’ll feel as if you’re living up to the part of the Hippocratic oath that instructs you to “prescribe regimens for the good of my patients according to my ability and my judgment and never do harm to anyone.”

3. Do the clinical trials in Albania, and if the drug is approved, use part of the profits to set up a compassionate use program in Albania, even though setting up a distribution system and training doctors to administer the drug, monitor patients for adverse effects,

Answer 1

1) I would support clinical trials in Albania. Although Albania is a poor country, it still has physicians and medical fraternity out there. And Albania is a place where the cost of trails would cost very low to AH Biotech. And on the top of it, physicians would lend their full support to AH Biotech and participate in the clinical trails and would help the company to grow to fame with this single drug overnight. On the service side, since Albania is a poorer country, AH Biotech's drug would help thousands of patients out there who are suffering from panic attacks get better relief from the medicine.

In my opinion, if the first step of trails and launching the drug is successful, irrespective of the place, then it will be successful project for the company. With the success that AH Biotech receives at Albania, it can probe the world that this drug can be administered without any issues, and show the world the proof of its trails. At a social cause, this will be helpful to millions of people all around the world.

2) I would certainly not support clinical trails in US. That is because, firstly the cost of trails in US is costlier than Albania. The cost will increase based on other factors like how much are the physicians willing to take part in the trails, begging them to take part in the trails, location where the trails are being conducted etc. Even after conducting trails, physicians may not be that positive to market the drug and they might ask for huge remuneration to market the drug to their patients.

In my opinion, United States will have huge market once the drug is successful for the world. Starting trails in United States may not inspire physicians to take part in the drug trails. But, when world talks of it, they will certainly accept the drug in their markets. That is because, it is the general psychology of the people, where if we beg for something good and positive, they will not look back. But, if world praises the drug, people would be behind the company, asking them to launch the product in US as well.

3) If the dug is approved in Albania, then it would be better idea for the company to set up a program where they can train all the physicians to administer the drug to the patients. That will be a positive act from the AH Biotech's side. As they began getting profits from Albania, they can introduce the drug in other parts of the world as well. This will bring immense popularity to the drug and with such popularity, US would come forward to welcome the company to introduce the drug there as well.