A Case Study on

Release of new medication for

Type II Diabetes into the market

Copyright © 2017 IQVIA. All rights reserved.

 Aayush Pramod Jessica

Krishna

Mesly

Arpita
Team V9

Vishwa Srikar

Subh

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Analytics Solutions Case Study
.Case Background
• Given competitive and regulatory issue, the company is only launching in the EU right now and not in US. Your client is
ABC Corp, a development stage biopharmaceutical company based in UK.

• ABC Corp has one main product in development for the treatment of Type 2 diabetes named ‘MAC1’.

• Their product is in the successful GLP-1 class of treatment which have been shown to help control blood glucose level in
Type 1 Diabetes patient.

• All current GLP-1 options are twice or once injectables, however ABC Corp’s product has a longer term formulation.

• Their product has completed phase II trials and ABC Corp need to decide whether to proceed to phase III

Q. 1. Please estimate the market size for type 2 Diabetes in EU5 countries

Q. 2. Our client is launching a new diabetes treatment in the GLP-1 Class. What factors should you consider while estimating
their revenue?

Q. 3. As a first step to estimate the revenue for the product, ABC Corp have come up with their expected clinical trials and
wanted to know what price they should expect?

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Assumptions
• The probability of inheritance of Type II diabetes when both the parents suffers is 75% and when
a single parent suffers is 15%.

• The prevalence rate for the diabetes patients does not change consequently for the next two
years.

• Our medicine is of a long term formulation. i.e. It has to be injected once in two weeks.

• The medicine consists of ingredients which has better efficiency , and with the same effect as
the existing GLP-1 version.

• The population of EU5 is assumed to be 52 mn.

• The price of the GLP-1 medicine for type 2 diabetes that exist in the market is 350-700€

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 Prevalence in EU5 Countries for type II
Population in EU5 Countries : 52 mn
Diabetes were found as follows:
People Suffering from Type II Diabetes: 4.5 mn
United Kingdom: 5.9
Spain: 11.2
Italy: 8.5
People who refuse take medicine due to the Germany: 13.4
lifestyle and various other reasons can be
France: 7.3
listed in the 10% category: 462k
Average Prevalence:9.2
So the market size for the prduct will be
approximately 4mn

Market
Size??

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 Efficiency

Cost for sales

representatives
Lifestyle

REVENUE

Side effects
Competitive
Pricing

Mode of
Intake

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PRICE EXPECTED

Since our drug has a formulation of once In two weeks, It will be more attracted to the people
because no one really like to take the medicine.
So, we can bring the new product into the market at a price ranging from 1500-2000€.

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Sources:

• www.researchgate.com
• IDF Diabetes Atlas 2017e