Case Analysis Cialis
Tracy Rucker
Marketing Mid-Term 2012
March 1, 2012
Product Team Cialis: Getting Ready to Market
Brief Background
Erectile dysfunction’ is the failure to achieve and maintain an erection sufficient for satisfactory sexual experience. It affects 150 million men globally. In March1998, Viagra (Sildenafil) was the first oral medication approved for use in ‘erectile dysfunction. Viagra had a very successful launch with a total of 600,000 prescriptions filled in the first month (April 1998), and instantly became a phenomenon for ED patients. Unfortunately, after six months Viagra suffered a huge setback when the FDA received reports of 130 deaths of patients taking Viagra; over half the incidents were cardiovascular related. Viagra sales declined swiftly; however, Pfizer without delay took a proactive stance to decrease the fears of safety for their new drug. They immediately conducted follow up studies on patients with cardiovascular disease and erectile dysfunction and communicated their findings to key decision makers and experts in the medical field. The company then initiated a $53 million advertising blitz, and deployed their sales force to make almost 700,000 doctors’ visits to push Viagra throughout 1999. Their aggressive marketing ploy earned the company sales that year that reached over $1 billion dollars. Viagra became a hit and the market leader and only company garnering a 90% market share for ED. A company ICOS, a small biotech start-up wanted to get into the business and eventually wanted to become a self-sufficient biotech company and acquire its own clinical development and marketing capabilities. ICOS was competent in R&D, but, not in marketing and bringing a drug to market through the FDA. In 1998 they strategically partnered with Eli Lilly and Company. Lilly was very successful at building alliances with other firms and became the ideal pharmaceutical company to partner with ICOS.
Decision Dilemma
The decision dilemma was
Marketing Mid-Term 2012
March 1, 2012
Product Team Cialis: Getting Ready to Market
Brief Background
Erectile dysfunction’ is the failure to achieve and maintain an erection sufficient for satisfactory sexual experience. It affects 150 million men globally. In March1998, Viagra (Sildenafil) was the first oral medication approved for use in ‘erectile dysfunction. Viagra had a very successful launch with a total of 600,000 prescriptions filled in the first month (April 1998), and instantly became a phenomenon for ED patients. Unfortunately, after six months Viagra suffered a huge setback when the FDA received reports of 130 deaths of patients taking Viagra; over half the incidents were cardiovascular related. Viagra sales declined swiftly; however, Pfizer without delay took a proactive stance to decrease the fears of safety for their new drug. They immediately conducted follow up studies on patients with cardiovascular disease and erectile dysfunction and communicated their findings to key decision makers and experts in the medical field. The company then initiated a $53 million advertising blitz, and deployed their sales force to make almost 700,000 doctors’ visits to push Viagra throughout 1999. Their aggressive marketing ploy earned the company sales that year that reached over $1 billion dollars. Viagra became a hit and the market leader and only company garnering a 90% market share for ED. A company ICOS, a small biotech start-up wanted to get into the business and eventually wanted to become a self-sufficient biotech company and acquire its own clinical development and marketing capabilities. ICOS was competent in R&D, but, not in marketing and bringing a drug to market through the FDA. In 1998 they strategically partnered with Eli Lilly and Company. Lilly was very successful at building alliances with other firms and became the ideal pharmaceutical company to partner with ICOS.
Decision Dilemma
The decision dilemma was