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Govenrment and Business Environment Case Study

Case Title:

Eli Lilly's Cialis: A Rising Star

Publication Year : 2004

Authors: B N Renuka Prasad, Christoph Zacharias

Industry: Health Care


Case Code: GBE0009

Teaching Note: Not Available

Structured Assignment: Not Available

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For men with Erectile Dysfunction (numbering 23 million in the US alone) Pfizer's blockbuster pill, Viagra, was the only answer until September 2003. It held a colossal 96% of the US market for impotence pills. In 2002, Viagra, the first oral drug to treat this male condition, reached $1.7 billion of global sales, of which $1.1 billion came from the US. In September 2003, Bayer and GlaxoSmithKline's Levitra hit the impotence market. In November 2003, Cialis, co-marketed by Seattle's Icos and Eli Lilly & Co, entered this market space. Cialis is a yellow coloured pill and Viagra, a blue one. Viagra and Levitra each had an effectiveness window in the range of 4-6 hours. Cialis expanded this window to 36 hours. Following its success in Europe, Australia and New Zealand, Cialis entered the lucrative US market in December 2003.

Pedagogical Objectives:

  • To discuss Cialis' strategy in the US where the pill has to contend with Levitra and the market leader, Viagra.

Keywords : Cialis; Viagra; Levitra; Eli Lilly; Icos; Lilly Icos; Pfizer; Bayer; GlaxoSmithKline (GSK); Impotence market; Innovation Management Case Study; Erectile dysfunction; Pharmaceutical; Strategy; Food and Drug Administration; FDA

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