Page 63 - Case Lab Case Analysis

Sales projections indicated that by

year three all sunk costs will have

been recovered. Thereafter profit

momentum would be maintained as

Proxydychromil is introduced into

new markets especially the US and

Canada. This will be followed by

introductions into other developed

markets.

If Phissons withdraws the

drug before the launch

the impact will be

catastrophic. The fear is

that the share price will

collapse as investors

seek to minimise their risk

exposure.

The alternative is to launch the drug and bear the fallout from the inevitable deaths.