Malaria Remedy

ProHub Comment

This case tests market sizing, breakeven analysis, and competitive positioning in emerging markets. The key challenge is determining which markets are economically viable given high fixed costs and required market penetration rates. The candidate must convert currency units, calculate required market share, and ultimately recognize that Uganda's market dynamics are unfavorable despite higher disease incidence.

Estimated Time 15 minutes
Difficulty Medium
Source ROSS
50 / 100
A team of university researchers based out of Uganda has developed a new vaccine to cure malaria. While there are existing vaccines out there for malaria, the researchers believe that this product has what it takes to be competitive with others in terms of price, accuracy, and reach. They are talking to a pharmaceutical manufacturer named David-Wilson Limited, based out of Ghana, for a potential partnership. In this partnership, David-Wilson will oversee manufacturing and distributing the product, and the researchers will provide the IP rights. David-Wilson Limited has also agreed with the university researchers that it will aim to operate this product at breakeven, to offer the product at the lowest possible price and maximize the number of lives saved. Should the researchers launch the product?

Clarifying Information

  1. What is the business objective of the researchers? Save the greatest number of lives while breaking even in 3 years
  2. Which market are they interested in entering? Their focus will be in the African market
  3. What stage of development & approval is the vaccine currently at? Vaccine has been approved by the equivalent of the FDA in several African countries
  4. What does David-Wilson Limited’s supply chain look like? Their raw materials all come from China, and their factories are all based out of Uganda. They currently ship all their products via trucks