Celebrex

Authors: Angelmar, Reinhard; Engsbye, Maiken
Source: INSEAD
Year: 2006
Company Name: Celebrex
Number of pages: 22

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Abstract:

The case describes the development and US launch of Celebrex, the first Cox-2 inhibitor, which is co-promoted by Pfizer and Searle. The launch was phenomenally successful. However, four months after the launch Celebrex is facing three issues: (1) how to address the mix-ups between Celebrex and two other drugs with similar names; (2) how to respond to media reports about deaths and serious side effects associated with Celebrex, which was positioned on safety; and (3) how to prepare for the impending entry of Merck & Co's Vioxx. The purpose of the case is to: (1) highlight the importance of preparing the market for a new product category; (2) develop a marketing strategy for a pioneer that takes two types of competitors into account - existing products from a different category and follower products in the same category as the pioneer; (3) dealing with product safety issues; and (4) pioneer-follower competitive dynamics.