Panacea is one of the world’s largest pharmaceutical companies. Based in the US it has a wide range

Panacea is one of the world’s largest pharmaceutical companies. Based in the US, it has a wide range of successful products in the market that includes various drugs for hypertension, diabetes, thyroid disorders, and antibiotics. Currently, it has only one product on the market for cancer treatment generating roughly $500M in annual sales. In the next 6-12 months, it is planning on introducing a new cancer drug in the market. This particular drug, GCN- 4000, will be for cancer patients, and its target audience is oncologists. GCN-4000 has already completed clinical trials and is currently awaiting approval from the FDA (the client is expecting FDA approval based upon the trial results). If this new drug is introduced this year, there will be no competition for at least one year. The current sales force includes 750 sales representatives who support the company’s cancer drug that is already in the market. To successfully introduce the new drug to the oncology market, the client will need to invest in expanding its sales division. Key Points and Assumptions 1.       The term of patent for a new drug is 20 years but most of that time period is spent in the FDA approval processes. Because of the patent, no generic versions of the drug are expected on the market. 2.       Being first to market is extremely important to the new product’s success. 3.       Cancer drugs are generally expensive but most of the “out-of-pocket” costs are covered by health insurance companies. 4.       To sell cancer drugs to oncologists, experienced sales personnel with technical backgrounds will be required within 6 months to recruit and train new employees. 5.       FDA approval is not guaranteed; depending on this approval time, new employees might be on overhead until FDA approval is received.   QUESTIONS Based on your reading of the scenario define and set goals for Panacea: 1. If it decides to expand its sales force                                                                   2. If it decides not to expand its sales force