The Flaxil Label (A) - The Case Centre

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Case

Reference no. 9-909-001

Subject category: Production and Operations Management

Authors: Gregory P Barron (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: 2008

Version: 02 September 2008

Length: 10 pages

Data source: Published sources

Topics: Cognitive psychology; Consumer behavior; International business; Negotiation; Risk management

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Abstract

This case focuses on the 2001 negotiation between Mytex Pharmaceuticals and the US Food and Drug Administration (FDA). The outcome of the negotiation would determine the new label for Mytex's blockbuster drug for arthritis, Flaxil. The negotiation is quite qualitative and differs from the typical price negotiation with which students are familiar. However, at stake was USD500 million in Flaxil sales and the safety of millions of patients. The (A) case presents the perspective of Mytex and the FDA on new data suggesting the Flaxil may have a side effect.

Industry:

Pharmaceuticals

Size:

70,000 employees; USD18 billion

Other setting(s):

2001-2002