Pepcid Case Study
Background
As self-medication is more widely adopted and healthcare payers seek to contain costs, the OTC market seems set for significant future growth. Most pharmaceutical companies anticipated rapid growth in the over-the-counter market as consumers increasingly sought to diagnose and self-medicate their common ailments. Many pharmaceutical companies are looking towards the OTC market for revenue protection and lifecycle extension for their major products. Although certain sectors of the OTC market are maturing, growth opportunities do exist in emerging markets and the leading antacids such as Mylanta, Maalox and Tums, those products ' market share dominance will be challenged.
Currently, many firms sought to overcome their lack of experience in marketing consumer products through alliances of various forms—mergers, joint ventures, or licensing agreements.
Pepcid, Tagamet and Zantac are among the most successful prescription drugs ever marketed. Pepcid is ranked in the top 15 largest-selling prescription products with 18 million U.S. prescriptions written since its prescription debut in 1986. However, those numbers pale in comparison to Tagamet and Zantac, which are practically household names. Since Tagamet went on the market in 1977, 236 million U.S. prescriptions have been written, and since Zantac became available in 1983, 188 million U.S. prescriptions have been written.
The popularity of Tagamet and Zantac made it important for Pepcid AC to get to the OTC market first and also differentiate itself from its competitors, SmithKline Beecham may have preferred to get to OTC market first, but that timing consideration is not seen as being as critical to the long term success of Tagamet HB as it is to Pepcid AC.
Internal Factor Evaluation Internal Factors Evaluation Matrix Critical Success factors Weight Rating Weighted Score Strengths The joint venture (the world’s largest diversified healthcare company Johnson & Johnson and
As self-medication is more widely adopted and healthcare payers seek to contain costs, the OTC market seems set for significant future growth. Most pharmaceutical companies anticipated rapid growth in the over-the-counter market as consumers increasingly sought to diagnose and self-medicate their common ailments. Many pharmaceutical companies are looking towards the OTC market for revenue protection and lifecycle extension for their major products. Although certain sectors of the OTC market are maturing, growth opportunities do exist in emerging markets and the leading antacids such as Mylanta, Maalox and Tums, those products ' market share dominance will be challenged.
Currently, many firms sought to overcome their lack of experience in marketing consumer products through alliances of various forms—mergers, joint ventures, or licensing agreements.
Pepcid, Tagamet and Zantac are among the most successful prescription drugs ever marketed. Pepcid is ranked in the top 15 largest-selling prescription products with 18 million U.S. prescriptions written since its prescription debut in 1986. However, those numbers pale in comparison to Tagamet and Zantac, which are practically household names. Since Tagamet went on the market in 1977, 236 million U.S. prescriptions have been written, and since Zantac became available in 1983, 188 million U.S. prescriptions have been written.
The popularity of Tagamet and Zantac made it important for Pepcid AC to get to the OTC market first and also differentiate itself from its competitors, SmithKline Beecham may have preferred to get to OTC market first, but that timing consideration is not seen as being as critical to the long term success of Tagamet HB as it is to Pepcid AC.
Internal Factor Evaluation Internal Factors Evaluation Matrix Critical Success factors Weight Rating Weighted Score Strengths The joint venture (the world’s largest diversified healthcare company Johnson & Johnson and