Summary: In March 1989 Merck and Johnson & Johnson joined hands to form the joint venture Johnson & Johnson/Merck Consumer Pharmaceuticals Company (JJM). JJM produces Pepcid which belongs to a class of drugs known as H2 receptor antagonists. This class of drugs reduces stomach acid secretion and revolutionized the treatment for ulcers and heartburn. Pepcid is well known for its quick heartburn relief has a stable market position but is still behind the leading competitors Tagamet (from SmithKline Beecham) and Zantac (from Glaxo Wellcome). The prescription ulcer drug market of H2 receptor antagonists in United States was $3.3billion in 1994. Zantac was number one in the H2 receptor antagonists market preceding Tagamet and …show more content…
JJM could do more extensive research on a large number of participants in focus groups. They should pursue research with a variety of focus groups differentiating the groups with age and sex. Since consumption of spicy food has shown to increase stomach acid production leading to heartburn or ulcer, they can target their research on consumers who eat spicy or cajun food. By having results from a large number and variety of focus groups, the efficacy of the drug can be proven strongly. JJM could ignore the recommendations of the FDA advisory committee and pursue with the current strategy. JJM could take their case directly to the FDA for approval and bypass the recommendations of the advisory committee. This could enable JJM to be the first in the market, an advantage over the competitors. The company has shown efficacy in treatment with the prescription only drug Pepcid, and could pursue their request with the treatment claim. With proven results of treatment shown by Pepcid, JJM could be able to increase their chances of getting an FDA approval. JJM purchased ICI America and thus acquired Mylanta, an over-the-counter antacid. Mylanta had a 16% market share in the OTC antacid market, second to Tums, and a 98% rate of brand awareness. JJM could concentrate on promoting Mylanta as their OTC stomach acid controlling product. This could allow them to bypass the hassle of FDA approval for
The “Cold Feet” dilemma had seven people that would be affected by my decision: The shareholders, the Chief Legal Officer, the Marketing Director, the Division Medical Director, the National Institute of Health, the future purchasers of the drug, and the Journal. The reputation lens and the relationship lens were used to help me make a decision. The relationship lens helped me identify that people involved are entitled to a number of limited rights, people without power must be protected, and the right to a fair process. This led me to choose to have a committee with the appropriate authority and representation
When a pharmaceutical company creates a new drug, it has to go through the FDA and is required to submit a New Drug Application (NDA) to the FDA. The FDA reviews the application to assure that there is an objective proof that the proposed drug is safe and effective. If the
Those target markets who rely on Johnson & Johnson health and medical needs are mostly patients, doctors, nurses and civilians. Therefore, the company need to sustain their products and services over all these years to ensure that lower income people and underprivileged patients are able to access on their medicines. This however requires the company to balance patient’s access and competitive dynamics in line with their need as the company need to have enough resources to keep on being innovating, creating new and better medicines and at the same time making sure there will be a fair return to the shareholder as well. Johnson & Johnson also work closely with the governments, physicians, non-government organizations and the international donors all around the world to provide its products within an affordable prices to its
An increasing number of people are using products to enhance their diets. A recent estimate indicates, “Americans are spending some $6 billion annually on nutritional supplements, and the market is growing by 20% every year” (Zahn, 1997). Of these supplements, the increase in herbal remedy use is most dramatic. Zahn holds that the increase can be attributed to the widely held belief that herbal substances are healthy and harmless because of their natural origins (1997). Unfortunately, research on these supplements, herbal or otherwise, has not transmitted to the public as quickly as the diet enhancers themselves. The phenomenon leaves many consumers misguided by skewed advertising and
In 2015, the pharmaceutical industry spent over 27 billion dollars on advertising. The two greatest components of this effort were promotional advertising and free medication sampling, which the pharmaceuticals invested 15.5 and 5.7 billion dollars respectively (“Persuading the Prescribers”). Promotional advertising involves direct contact with health professionals, the most common being extravagant lunch conferences held for physicians and their staff. On the other hand, sampling involves distributing free sample of medications to physicians, who then have a choice of providing these samples to patients. As a result of these methods, the industry has seen revenue around $400 billion with 90% of physicians having a relationship with a drug company (Campbell 2007). Moreover, the prices of prescriptions continue to rise; a copay of a generic drug is $11.72, preferred brand drug is $36.37 and a specialty drug is $58.37 (Coleman and Geneson 2014). Although the profits are immense in the numbers demonstrated above, it is no surprise when pharmaceutical drug companies elevate their prices even more. For instance, recently Turing Pharmaceuticals raised the price of their medication Daraprim from $13.50 to $750. Keep in mind, this medication is used for threatening parasitic infections, aids, and cancer with alternative options currently found to be inefficient (Pollack 2015). Another example of this practice involves cycloserine, a drug used to
Eli Lilly’s decision to create a joint venture was not surprising (figure 1). The India government limited foreign direct investment to 51%, importing was subject to manufacturing at high costs outside the country and then paying high importation tariffs, and licensing was not prudent due to an absolute lack of product patents laws that were needed to protect Eli Lilly’s intellectual property.
Johnson & Johnson (J&J), incorporated in 1887, is one of the largest companies in the pharmaceuticals manufacture industry. The company is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. The company has a well-diversified landscape operating in three major segments: consumer products, pharmaceutical and medical devices and diagnostics. The company 's corporate headquarters is located in New Jersey but has facilities in 57 countries. With over half its sales
The competitors of our product would be Tylenol. The product was developed by McNeil Laboratories. The major ingredient in their medication is acetaminophen. The company was bought by Johnson & Johnson in 1959. They began advertising to many health professionals. They are a company that has many different brands of drugs that serve children up to adults. Their product is said to work by being able to elevate the body’s overall pain threshold so that an individual who takes this medication will feel less pain.
Johnson and Johnson, commonly called J&J for short, is one of the world's well known, largest, most decentralized and most diversified health care companies. Since 1887, Johnson and Johnson has been producing, manufacturing and selling products related to human health and well-being. Today J&J has over 200 autonomous operating companies and do business globally specializing in consumer products, medical devices and diagnostics, and pharmaceuticals. Consumer products are the company's most recognizable segment, including popular brands like Tylenol, Johnson and Johnson Baby Shampoo and Band-Aid. The medical devices and diagnostics segment manufactures products including surgical equipment
The company is so large that no one drug can lift it from its current sales doldrums. In addition, the company was once highly attractive to investors, but its recent stock price fell to 1997 lows. This may put pressure on the company to attempt acquisitions at a time when the company is ill-equipped to integrate a new company into its organization, and it is engaged in a cost-cutting program at a time when it may need to invest even more in research and development (McTigue Pierce, 2005).
Founded by two mutual acquaintances and former staff members of California Biotechnology Inc. (CalBio), Lorin Johnson and Randy Hamilton set out to build a company specializing in a specific area of need, such as inflammatory bowel disease. Their search throughout the international landscape was focused on the chemical compounds that would be the foundation for therapeutic drugs that serve as a benefit to the management gastric disorders. As these compounds were discovered by way of research, with the intent to align and contract with already licensed agreements if the price allows for the newly formed company to take part. One such compound that fit the need for the company was found
The problematic issue for Bristol-Myers was to position its new aspirin drug to the potential customers and decide a good price which can not only make it acceptable by the customers, but also give a fair profit to the company. In other words, the company had to formulate an effective marketing and promotional strategy for its new drug, Datril. The company was not merely willing to establish its new brand in the analgesic market; the main issue was to establish this new brand in the presence of a strong competitor, Tylenol.
Another issue is too much power is given to scientists in decision-making of candidate drugs. Also there were inadequacies and lack of communication between marketing and research. Merck’s marketing and research needed to realize that the making of the drug is not only the most important part in increasing sales, but it also included a strong advertising campaign that will satisfy the needs of the customers.
Even though I think conducting clinical trials in emerging economies is beneficial to the firm, Novo Nordisk should still follow below guidelines for this major decision to protect its own reputation and serve the best interest for every stakeholder:
seeking approval for Antegren, a drug that Biogen Idec was developing in partnership with Elan to