Pepcid Ac

954 Words Feb 28th, 2008 4 Pages
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
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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
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