Case Analysis Report on Ah Biotech
Case Analysis Report on AH Biotech
Facts of the Case
AH Biotech is a pharmaceutical company based in New Jersey.
The company’s founder and CEO is Dr. Abraham Hassan, a psychiatrist-turned-entrepreneur. He is Egyptian-born but is a US trained physician.
The company developed a novel drug that offers long term relief for panic attacks. This drug would be the company’s first product if ever approved by the FDA.
Although optimistic of the potential of this new drug, the company is facing a dilemma on where to conduct the large-scale clinical trials – in Albania or in the US.
The research and development head, David Berger, favors Albania since conducting tests there is time, money and human resource efficient (~25% savings).
However, Albania, being a poor country, is not good marketing place for the novel drug. As a result, they may have to cut off the treatment after the study.
The US is the exact opposite of Albania. Conducting the tests in the US would be costly and time-consuming, but there is a guarantee that patients will patronize the drug once approved.
Problem statement
How will Dr. Abraham Hassan choose a study site that will utilize minimum resource, provide maximum profit and result to the attainment of both the company long-term goals and the patient’s needs?
Key objectives
To select a strategic site practical to conduct large-scale clinical trials;
To effectively market the product while considering the patient’s needs and financial capacities; and
To remain ethical in prescribing the drug towards customers.
Analysis of Causes
Globalization
Companies from all across the globe are interdependent.
Foreign countries may be a good source of resources, information, employees, costumers, etc.
There are three stages of globalization: domestic, international, multinational and global.
Contextualization:
AH Biotech has to locate a good site to conduct the clinical trials.
Several factors must be put into consideration such as the following: cost of clinical trials, duration of study, number of willing study participants, health status of the community, FDA standards of the country, etc. A dilemma arose in choosing a site because all of these factors would have a great impact in the results of the study as well as the company’s economic goals.
Albania