Pharmacia & upjohn case study

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Pharmacia & upjohn case study

By | August 2012
Page 1 of 4
Olena Scarboro
August 12, 2012
University of South Carolina
Case: Pharmacia & Upjohn, Inc. Rogaine Hair Regrowth Treatment Challenge:
* 2/9/1996 – FDA approves Rogaine Hair Regrowth Treatment for OTC sale * 4/5/1996 – Pharmacia & Upjohn, Inc. request for marketing exclusivity is denied by FDA * 4/12/1996 - Pharmacia & Upjohn, Inc. files a lawsuit against the FDA * 4/15/1996 – A temporary restraining order prohibiting the FDA actions * 4/30/1996 – The Federal District Court rules in favor of the FDA

Pharmacia & Upjohn, Inc., the manufacturer of Rogaine Hair Regrowth Treatment, expected a 3-year monopoly on selling its Rogaine Treatment product, but was denied the production and marketing exclusivity. Competitors:

* 2-percent solution of minoxidil
* Bausch & Lomb
* Alpharma
* Lemmon Company
* Proscar for hair growth, a prescription pill
* Merck
* Hairpieces or wigs
* 2M American consumers
* $400M annual spend
* Males:
* Small filler hairpiece - $325
* Human hair hairpiece - $1,000 - $3,500
* Synthetic hairpiece - $1,800 - $2,500
* Females
* Full wig - $2,000
* Maintenance – every 6 to 8 weeks, at $50 - $100. * Additional costs:
* Spirit gum or a double-faced tape used to hold the hairpiece or wig to sculp * Hair transplants
* Punch grafting
* Flap grafting
* Cost $3,500 - $15,000
* Male pattern baldness reduction
* Cost $2,000 - $3,500
* $800M annual spend
* Hair shampoos
* Lotions
* Conditioners
Product:
* Non-prescription, OTC drug, Rogaine
* Positioned as the only product available without prescription that is medically proven to regrow hair * Packaging:
* Rogaine for men and Rogaine for women
* Featuring labeling and a brochure
*...