Pharmacia & Upjohn Case Study
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 * Price: * OTC: * 1
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 * Price: * OTC: * 1
References: Kerin R. & Peterson R. 2011. Strategic Marketing Problems. Cases and Comments. Pearson