AstraZeneca Prilosec and Nexium: Strategic Challenges in the Launch of a Second-Generation Drug Harvard Case Solution & Analysis

Tom McKillop, CEO of AstraZeneca, faced with the classic quandary of major pharmaceutical companies. During the year, the patent firm for Prilosec (omeprazole active ingredient) expires. Prilosec was U.S. $ 6.2 billion / year blockbuster that revolutionized the treatment of chronic gastro-esophageal reflux disorder (GERD). Severe cost-based competition from generic drug manufacturers, however, are inevitable. Patent expiration was nothing new for the U.S. $ 15.8 billion in drug company profits. AstraZeneca was Nexium, an improvement over the original molecule Prilosec, in the pipeline. Ideally, we would like to move very loyal customers Prilosec Nexium. 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 introduce more-the-counter (OTC) version of omeprazole. Tactically, AstraZeneca would use regulatory incentives and intellectual property to strengthen its competitive position. How can a company uses its entire portfolio of intellectual property including patents, trademarks, actively manage pricing based on competitive strategy and achieve revenue growth in the market of GERD? "Hide
by James J. Conley, Robert C. Wolcott, Eric Wong Source: Kellogg School Management 20 pages. Publication Date: January 1, 2006. Prod. #: KEL334-PDF-ENG

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AstraZeneca Prilosec and Nexium: Strategic Challenges in the Launch of a Second-Generation Drug

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