Tom McKillop, CEO of AstraZeneca, faced with the classic quandary of major pharmaceutical companies. Patent firm for Prilosec (omeprazole active ingredient) expires. Severe cost-based competition from generic drug manufacturers was inevitable. Patent expiration was nothing new for the U.S. $ 15.8 billion in drug company profits but Prilosec was the most successful drug franchise company, with global sales of U.S. $ 6.2 billion. How can a company of innovation your way around the overall costs through competition and avoid falling revenues associated with general access to the drug market? AstraZeneca had other future products in the pipeline, namely Nexium, an improvement over the original Prilosec molecule. In addition, the company had the opportunity to present their own version of the total omeprazole, thus becoming the first engine in the general segment, and / or submit OTC version of omeprazole, which can be connected to other markets. Ideally, AstraZeneca would like to move very loyal customers Prilosec Nexium. In this market, direct to consumer advertising has a remarkable efficiency. Classic problems of marketing pricing and promotion must be addressed to Nexium launch, and the product and place for the general problem or OTC options. What mix of marketing options will maintain the value of the best innovations of original omeprazole? "Hide
by James J. Conley, Robert C. Wolcott, Eric Wong Source: Kellogg School Management 20 pages. Publication Date: January 1, 2006. Prod. #: KEL336-PDF-ENG
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