Merck priced prescription hair-growth drug Propecia — $50 per month’s supply. Ov

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Merck priced prescription hair-growth drug Propecia — $50 per month’s supply. Overthecounter competitor Rogaine (topical liquid) — about $30 per month. Merck’s drug for enlarged prostate, Proscar, has the same active ingredient — finasteride — as Propecia. Merck’s price for 30 Proscar tablets — $70 — one Proscar tablet equals five daily doses of Propecia. Some physicians write Proscar prescriptions for balding men; they slice the pills into five parts. Hence, they pay about $14 per month ($70/5) for hair- loss treatment, versus $50 for Propecia. Merck defends Propecia’s price premium by citing research costs including clinical trials — $450 million. Most insurance policies cover Proscar, but not Propecia. The makers of Rogaine launched an $80 million advertising campaign for extra-strength Rogaine, applied twice daily. An Italian website offers Proscar tablets for U.S. delivery at $63 per 36 tablets. Suggest actions for: • Merck’s director of marketing • Compliance director for a national HMO • Rogaine’s marketing director Merck priced prescription hair-growth drug Propecia — $50 per month’s supply. Overthecounter competitor Rogaine (topical liquid) — about $30 per month. Merck’s drug for enlarged prostate, Proscar, has the same active ingredient — finasteride — as Propecia. Merck’s price for 30 Proscar tablets — $70 — one Proscar tablet equals five daily doses of Propecia. Some physicians write Proscar prescriptions for balding men; they slice the pills into five parts. Hence, they pay about $14 per month ($70/5) for hair- loss treatment, versus $50 for Propecia. Merck defends Propecia’s price premium by citing research costs including clinical trials — $450 million. Most insurance policies cover Proscar, but not Propecia. The makers of Rogaine launched an $80 million advertising campaign for extra-strength Rogaine, applied twice daily. An Italian website offers Proscar tablets for U.S. delivery at $63 per 36 tablets. Suggest actions for: • Merck’s director of marketing • Compliance director for a national HMO • Rogaine’s marketing director Merck priced prescription hair-growth drug Propecia — $50 per month’s supply. Overthecounter competitor Rogaine (topical liquid) — about $30 per month. Merck’s drug for enlarged prostate, Proscar, has the same active ingredient — finasteride — as Propecia. Merck’s price for 30 Proscar tablets — $70 — one Proscar tablet equals five daily doses of Propecia. Some physicians write Proscar prescriptions for balding men; they slice the pills into five parts. Hence, they pay about $14 per month ($70/5) for hair- loss treatment, versus $50 for Propecia. Merck defends Propecia’s price premium by citing research costs including clinical trials — $450 million. Most insurance policies cover Proscar, but not Propecia. The makers of Rogaine launched an $80 million advertising campaign for extra-strength Rogaine, applied twice daily. An Italian website offers Proscar tablets for U.S. delivery at $63 per 36 tablets. Suggest actions for: • Merck’s director of marketing • Compliance director for a national HMO • Rogaine’s marketing director

Explanation / Answer

director of marketing should take following steps :

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