Merck priced prescription hair-growth drug Propecia — $50 per month’s supply. Over-the-counter competitor Rogaine (topical liquid) — about $30 per month. Merck’s drug for enlarged prostate, Proscar, has the same active ingredient — finasteride — as Propecia. Merck’s price for 30 Proscar tablets — $70 — one Proscar tablet equals five daily doses of Propecia. Some physicians write Proscar prescriptions for balding men; they slice the pills into five parts. Hence, they pay about $14 per month ($70/5) for hair- loss treatment, versus $50 for Propecia. Merck defends Propecia’s price premium by citing research costs including clinical trials — $450 million. Most insurance policies cover Proscar, but not Propecia. The makers of Rogaine launched an $80 million advertising campaign for extra-strength Rogaine, applied twice daily. An Italian website offers Proscar tablets for U.S. delivery at $63 per 36 tablets. Suggest actions for:

• Merck’s director of marketing

• Compliance director for a national HMO

• Rogaine’s marketing director

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1There are a few things that Merck could do in order to make their prescription hairgrowth drug more ... View the full answer