Tuesday 28 July 2015

Eli Lilly Development Cymbalta

To further sharpen your decision-making skills you will be involved in two case study analyses in W4 and W7. These cases will help you to apply the marketing concepts and tools youve learned so far in the course. This week's case deals with the development of Cymbalta.
Each student will prepare a case analysis (6 pages max) utilizing the case study framework outlined below1.. Note: for your case analysis please DO NOT conduct additional research--utilize the information presented in the case narrative and exhibits. The written report should have three major sections 
1) Identification of the strategic issues and problems This section contains a focused paragraph defining the problem. A problem well-defined is half solved; therefore your analysis must contain a clear statement of the underlying problem(s) facing the organization. Specify the constraints and options available to the organization.
2) Analysis and evaluation. This section should contain a thoughtful and succinct assessment of the industry,the market, buyer behavior, and the organization. Be careful not to merely restate case information; rather, focus on assessment and interpretation of the facts, qualitative and quantitative data, and management views. The SWOT analysis framework that you learned in W3 is one of the useful tools to use in case analysis.
This section should also present the most plausible alternative courses of actions with pros and cons analysis for each alternative.
3) Recommendations. This section presents a set of recommendations chosen from the alternatives discussed in the previous section. Make sure those recommendations are coming out of your assessment of the situation. Recommendations should be implementable and realistic given the case situation.

Description
Anticipating the expiration of its Prozac patent, Eli Lilly has to make tough decisions regarding the development of its next-generation antidepressant drug. In particular, the company needs to decide whether to first establish that once-a-day dosing for Cymbalta (Duloxetine) is effective in treating major depressive disorder and only after launch get FDA approval for treating painful physical symptoms, or to first establish efficacy in treating pain and later get FDA approval for once-a-day dosing. The decision needs to take into account how Cymbalta can be differentiated in the marketplace vis-a-vis other antidepressants and the marketing challenges to getting adoption that the new drug will face. Lilly's new antidepressant team making this decision has several market research inputs on physicians and patients at its disposal.
Learning objective:
To learn principles for making new product development decisions, taking into account future marketing challenges.
Subjects Covered:
Barriers to entry; Innovation; New product marketing; Price differentiation; Product development; Strategy
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