Case 21 • The Headaches of GlaxoWellcome comply with regulations, and selling it to the end users while making a proﬁt. In addition, there is a tariff for the import of candelilla wax into Japan of 3.8 percent; this is for either ﬁrst or second reﬁned candelilla wax. FUTURE OF THE CANDELILLA WAX INDUSTRY ´ According to executives of Ceras Deserticas, the future of this market is promising. They expect growth in the future, although they they have not made public the actual estimated growth for the market. They are worried about the best path to take advantage of this growing and competitive market. ´ The industry is consolidating and if Ceras Deserticas does nothing, it will either die or be taken over. As mentioned before, there are several joint ventures in which U.S. companies are investing in Mexico to guarantee a steady supply of candelilla wax. Both Ceras Nacionales de Mexico and
Multiceras have established joint ventures with American companies. They are pursuing research and development to try to create a synthetic wax that can replicate the characteristics of candelilla wax and meet the requirements of end-users. DISCUSSION QUESTIONS 1. Of the three options options presented at the beginning of ´ the case, what should Ceras Deserticas do? 2. Why would Mitsuba Trading Co. be interested in a joint ´ venture with Ceras Deserticas? 3. What would be the advantages and disadvantages for Ceras ´ Deserticas of a joint venture? ´ 4. What strategy must Ceras Deserticas follow in approaching joint venture?
THE HEADACHES OF GLAXOWELLCOME
Migraine medicine is a key growth area for Glaxo Wellcome Inc. (Glaxo); a Britain-based pharmaceutical company with global operations.1 Glaxo’s primary business is to market prescription products to physicians and healthcare providers. Glaxo was the ﬁrst pharmaceutical company to manufacture and market a revolutionary new class of prescription migraine medications called ‘‘triptans’’. Triptans, which Glaxo launched in 1993, are a class of medications that work speciﬁcally on the 5HT-1 receptor sites, which are believed by doctors to be the primary cause of migraine headaches. In mid May of 1997, Sir Benjamin Palmer, the general manager of Glaxo’s CNS/GI Metabolic division, sat at the head of the conference table in room G-1 of the Glaxo Wellcome global headquarters in Stockley Park West, England. A group of 6 marketers (3 from the ‘‘Professional’’ team and 3 from the ‘‘Commercial’’ team) were staged in front of Palmer and two vice presidents of sales (East and West). The three ofﬁcers listened attentively to the ﬁnal marketing presentation that more than 60 marketing team members had worked on for the past 19 months. The issue: How to launch Naramig, Glaxo’s new (second generation) prescription migraine medicine, in the U.K. In the back of Palmer’s mind were the following considerations: – Although Naramig was considered by Glaxo to be a better triptan than Imigran, in reality, there were some attributes of Naramig that were inferior to those of Imigran. – It was not as if Imigran had not been successful: Glaxo had captured 91 percent of the prescription medication market share (in £s) for migraines in the U.K. – Glaxo expected the approval and launch of its competitor, Zeneca’s ﬁrst triptan medication (Zomig) prior to that of Naramig, and likewise, expected Zeneca to market Zomig as a 2nd generation triptan. 8 1 Months Later 2 Early in February of 1998, a similar scene to that of 8 1 months 2 ago, in room G-1 of the U.K. headquarters, was taking place in a conference room located at the U.S. home ofﬁce in Research Triangle Park, North Carolina. Mark Glackin, U.S. General Manager of Glaxo’s CNS/GI Metabolic Division, considered several marketing options presented by the team for the U.S. launch of Amerge, Glaxo’s second-generation triptan that had been marketed in the U.K. as Naramig.2 Although Glackin had several considerations to keep in mind, various...
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