Burroughs Wellcome and the Pricing of AZT (A)

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Case

Reference no. UVA-E-0074

Subject category: Ethics and Social Responsibility

Authors: Jeanne M Liedtka (Darden School of Business, University of Virginia)

Published by: Darden Business Publishing

Originally published in: 1991

Version: 06.1991

Length: 9 pages

Data source: Published sources

Topics: Business and society; Ethical issues; Ethics, Medical; Pricing; Diversity case; Social responsibility

Share a link: https://casecent.re/p/1720

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Abstract

This case focuses on the development of the first drug approved for the treatment of AIDS, AZT, and the issues faced by its UK producer, Wellcome PLC, as it decides how to set its price. The case includes brief overviews of the disease itself, drugs in development to treat it, the pharmaceutical industry and its practices, and the history of Wellcome PLC and its US subsidiary, Burroughs Wellcome. The A case concludes with analysts' predictions for the soon-to-be-announced price of AZT.

Industry:

Pharmaceuticals

Size:

USD2.4 billion in revenues

Other setting(s):

1987-1991