Frito-Lay's Case

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Pharmacia & Upjohn, Inc.: Rogaine Hair Growth Treatment CASE SUMMARY Since 1988, Rogaine Hair Regrowth Treatment had been sold as a prescription drug in United States of America (USA). As the only medically approved hair regrowth treatment, Rogaine has enjoyed cumulative sales of $700 million in the USA and exceeded $1 billion worldwide since its inception. Rogaine was approved for sales without prescription or over-the-counter (OTC) by the U.S. Food and Drug Administration (FDA) on February 9, 1996. The company has further requested for FDA for a three-year period of marketing exclusivity for non-prescription Rogaine under the Waxman-Hatch Amendments to the U.S. Food, Drug and Cosmetic Act prescriptions. With the launch of nonprescription Rogaine expected in April 1996, the company pursued a tight deadline in order to ensure Rogaine can be quickly and widely available to the consumers. Extensive marketing programs for Rogaine had been outlined, which targeted men and women aged 25 to 49. Rogaine would be positioned as the only medically proven hair regrowth treatment that was available OTC. Separate packages with different instruction and apparatus would be made available for men and women and priced at $29.50, approximately half of Rogaine’s prescription price for one-month supply. Rogaine would be made available widely in the pharmacies and hair-care section of food, drug and mass-merchandise retail outlets. Estimated marketing spending of $75 million was allocated for the first six-month period of the Rogaine and related Progaine shampoo. More than half of the budget would be allocated to consumer advertising. Retail store buyers of health and beauty aids were also told by Rogaine officials that the brand had retail sales potential of $250 million per year. However, Pharmacia & Upjohn, Inc had been notified by the FDA that it had been

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