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UPJOHN ROGAINE CONSUMER AD CAMPAIGN BEGINS WITH TV SPOT ON NOV. 23; PRINT ADS WILL BEGIN RUNNING IN DECEMBER ISSUES OF HIGH PROFILE MAGAZINES, USA TODAY

Executive Summary

Upjohn kicked off an eight month, $20 mil. consumer ad campaign for Rogaine on Nov. 23. The first Rogaine TV spot, in a "see your doctor" format, aired during ABC's "War and Remembrance" miniseries. The company plans to run the ad for the prescription anti-baldness treatment approximately 50 times through the end of the year on all networks and independent channels, an Upjohn spokesperson said. Upjohn's print ad campaign for Rogaine will start during the first week of December with an ad touting the "same message" as the television spot in USA Today. Upjohn said it will also begin running four-color print ads "in December issues of major consumer magazines such as Time, Newsweek, U.S. News and World Report, People, BusinessWeek, and Sports Illustrated." Rogaine (minoxidil) is not mentioned by name in the TV spot. Instead, a young balding man standing on a beach discusses his one-time concern about the lack of a cure for baldness. He notes, however, that through a consultation with his doctor he learned about an available treatment. Viewers are advised to follow the same course of treatment. The Upjohn name appears at the end of the ad, which was reviewed and approved by FDA's ad division. The company indicated that another television commercial may be aired early next year. Upjohn has apparently decided to move up its timetable for consumer advertising by at least six weeks. In a press conference in New York in October, Upjohn said it would begin its $20 mil. ad campaign for consumers in January of next year. An Upjohn spokesperson said that the company decided to move up the kick-off of the Rogaine consumer ad campaign due to the earlier than expected completion of the company's detailing efforts to physicians. However, Upjohn's decision to move up the launch date for the consumer promotion may have been influenced, in part, by an overly successful initial sell-in of the product in September. At least one securities analyst has predicted a sharp decline in Rogaine sales for the fourth quarter based on an oversupply of the drug at the wholesale and retail levels. Rogaine was shipped to the trade during the last few days of the third quarter, with sales during that period reportedly in the $30 mil. range. Since Rogaine's launch in late September, Upjohn's initial marketing and promotional activities have been directed at physicians. Upjohn began running a 12-page ad in the major medical journals in early October, coinciding with the product's launch. The company is also distributing 30,000 patient videotapes to physicians through its sales reps demonstrating the proper use of Rogaine. The topical baldness drug was approved by FDA in mid-August. The Upjohn consumer ads are targetting young men, 25-40 years old, who have been balding for less than ten years and have an annual income of $35,000 or more. A year's supply of the drug will cost consumers $500 or more, exclusive of doctors' fees. Rogaine is priced to pharmacists at $42.50 per 60 ml bottle, which is about a one-month supply of the drug.

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