Introduction: Statement of Problem
In March 1989, Merck and Johnson & Johnson formed the vocalise venture Johnson & Johnson/Merck Consumer Pharmaceuticals Company (JJM) to develop OTC versions of Mercks prescription. JJMs first OTC attempt would be for famotidine, an H2 blocker, which was currently terzetto in sales in the prescription mart (Exhibit 1&2). Since Pepcid had not been successful in gaining ground in the prescription market place over its top two competitors, cimetidine and Zantac, it was critical for Pepcid AC to enter the OTC market ahead of their competitors if they hoped to gain a better share in the OTC market. However, the problem that JJM was facing that in July 1994, advisors to the FDA had recommended against allowing JJM to sell Pepcid AC as an OTC medication. JJM needed FDA approval in order to market Pepcid AC and the FDA usually, but not always, followed the recommendation of its advisory committee.
JJM had three options: (1) set up a meeting with the FDA and argue their case for the treatment and ginmill claims and thereby preserve the opportunity to be first to market, (2) drop the prevention claim and thus increase the chances of being first to market, or (3) give up the opportunity to be first to market and improve their chances of FDA approval by collecting additional data to support their claims. See Exhibit 3 listing pros and cons of to each one option.
Analyses
In looking at the potential customers and market for Pepcid AC, it seems the customers have express a need for a result that lasts longer than the OTC antacids already on the market and that alike help prevent heartburn symptoms before the start. Pepcid AC could be very competitive in the traditional OTC antacid valued at $750 million in 1994 if it kindle meet the demands of the consumers that typical use these products. According, JJM research approximately 28%-34% of all OTC antacids would consider substituting Pepcid AC for...If you want to get a full essay, order it on our website: Orderessay
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