At the Heart of Controversy: Genentech Markets a Genetically Engineered Drug

Abstract

This case, developed from a wide variety of publicly available information, presents ethical and economic issues arising from the development, marketing, and pricing of a biotech drug. Genentech developed TPA, the first genetically engineered drug that could be used in clot-dissolving therapy for heart attack, and marketed it as Activase. Public outrage focused on the disparity between the drug's $10 direct manufacturing cost and what Genentech charged for its drug. Activase/TPA was priced at $2200 a dose, raising immediate concerns about its affordability and therefore availability to those who needed it. Additional issues arise from other events, including concern over related-party relationships between the company and organizations which researched and recommended TPA, as well as aggressive marketing of TPA to physicians and the company's refusal to participate in an international drug study to compare TPA with competitor drugs.

Citation

Ross, D., Royalty, K. and Kampschroeder, K. (2005), "At the Heart of Controversy: Genentech Markets a Genetically Engineered Drug", , Vol. 1 No. 2, pp. 46-59. https://doi.org/10.1108/TCJ-01-2005-B005