Cymbalta - Case Study

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Case Analysis - Cymbalta


Haris Shahid

AMBA 650

The University of Maryland University College

Introduction: The Problem

At Eli Lilly and Company (Lilly), patent expiration is part of everyday business. However, Prozac, Lilly’s flagship product and market leader in the most popular class of pharmaceuticals used to treat depression – the selective serotonin reuptake inhibitors (SSRIs) was definitely a cause for concern (Ofek & Laufner, p.1). Patent expiration meant that generics would flood the market and Prozac’s current $2 billion in annual sales would create a huge revenue gap (Ofek & Laufner, p.1). Although management at Lilly was actively seeking a successor to Prozac the road to pharmaceutical breakthroughs is
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This analysis, termed as SWOT analysis and defined by Kotler & Keller (2009) as “the overall evaluation of a business’s strengths, weaknesses, opportunities and threats,” of Lilly is as follows:

|Strengths |Weaknesses |
|High revenue/profitability. |Perceived primarily as “the Prozac (antidepressant) company” although |
|High market share. |it has other highly profitable ventures in other pharmaceutical drug |
|High customer satisfaction. |market segments. |
|Financially and intellectually gifted marketing & R&D departments. |Too large a segment of the annual revenue is dependent on its SSRI |
|Long established innovator in the pharmaceutical drug industry. |Prozac. |
|Market innovator in the most profitable SSRI antidepressant market |Not enough resources are allocated to market its other profitable |
|segment. |ventures to reduce reliance on Prozac. |
| |Difficulty in creating and marketing innovative
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