Case Background
Cambridge Science Pharmaceuticals (CSP) is an international health care company that develops, manufactures and markets products that treat metabolic disorders, gastrointestinal diseases, immune deficiencies and other chronic and acute medical conditions. In April of 2008, CSP’s latest product Metabical, which was a new drug that had been clinically proven to be effective at achieving weight-loss in moderately overweight individuals, had just received FDA approval as the first prescriptive drug of its kind.
At the time of Metabical’s FDA approval, the only other prescription drug approved by the FDA for treating overweight individuals was Orlistat, which blocks the body’s absorption of fat; however, Orlistat has many undesirable side effects which may lead to serious medical conditions. Metabical, on the other hand, has a less dangerous, dual layer, controlled-release formulation which acts as an appetite suppressant and also contains a fat blocker as well as a calorie absorption agent. During its clinical trials, Metabical did not exhibit many of negative side effects that Orlistat has, leading to judgments that it is a superior treatment for achieving weight-loss and resulting in strong endorsements from the medical community.
Weight-loss supplements can be classified as either prescriptive drugs or over-the-counter (OTC) remedies, and in general, OTC remedies are not as popular with consumers as prescription drugs for stimulating weight-loss in overweight individuals. This tendency to favor prescription drugs over OTC remedies is due in part to a lack of government regulation and possible safety concerns. Additionally, in recent years OTC remedies have become less popular with consumers than diet plans, exercise plans and meal replacement/weight management plans which are seen to be safer alternatives. These facts, along with its small number