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Wyeth Pharmaceuticals and Vaccines
Brand Marketing Plan
List Price Strategy: As the market share leader in hormone replacement therapy (HRT),
Prempro and Premphase are to be priced at a premium to other brand name HRT and
price increases should be aggressive to cover increasing costs and to maximize profit. A
managed care elasticity study completed in 2000, looking at Prempro pricing, indicated
that the list price could be increased to $29.00 for a month supply without raising strong
resistance from managed care. The direct price for a month supply as of March 2001 is
$24.97 and $22.80 for Prempro and Premphase respectively.
Average Selling Price: The weighted ASP is listed below. The increase in gross ASP is
consistent with catalog price increases; the increase in net ASP is also influenced by a
relative decrease in sales deductions.
2000
1999 Change % Change
Gross ASP per Tablet $0.7331 $0.6313 $0.1017
16.1%
Net ASP per Tablet
0.6697 0.5728
0.096
16.9%
Terms of Sale: All classes of trade receive terms of 2% 30; net 31 days.
1.16 Reimbursement Strategy and Action Plan
Although a variety of ERT/HRT products are reimbursed in the United States, cost
concerns remain an important consideration in the ERT/HRT market. Inexpensive drugs
such as Premarin appear on most formularies, approximately 99% with Prempro on
approximately 96% of all formularies across the United States. Pricier drugs, such as
raloxifene and some transdermal products, are less likely to be reimbursed. As a
consequence, the bottom line for third-party payers, physicians, and patients
themselves, will always factor into prescribing and consumption patterns in the ERT/HRT
market. Pricing of new drugs must therefore remain competitive in each of the major
markets if newer agents are to gain patient and clinician acceptance
Managed care organizations have made strong inroads in serving both the Medicare and
non-Medicare populations in the United States. Managed care is a mixed blessing with
regard to the future of ERT/HRT in the United States. In the short term, cost constraints
may initially depress the market prospects of higher-cost products. In the long run,
however, the trend toward preventive strategies and the expected positive results of
major trials (e.g. WHI, WISDOM, and RUTH) could pay off for therapies that offer a
proven preventive benefit as well as symptom relief.
6. Tactics
This section presents specific tactics such as programs, promotional materials, and
initiatives that are created to support strategic imperatives.
Tactic
Strategy: Grow market by establishing ERT/HRT as essential therapy.
Description
Timing
DTC Advertising
60"
Jan-May 2002
(Including Media,
Celebration:
Production,
Real Women
Jan-Mar. 2002
Fulfillment,
Lauren Hutton
2001, Wyeth-Ayerst Pharmaceuticals.
CONFIDENTIAL
Page 34 of 45
ALL RIGHTS RESERVED.
RESTRICTED TO INTERNAL USE ONLY
Printed on: 11/8/2001
Order
Confidential Pursuant to Confidentiality
LAWT021-009907
Source: https://www.industrydocuments.ucsf.edu/docs/khbw0217

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