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UPJOHN STIMULATING SCALP MARKET WITH PROGAINE

Executive Summary

UPJOHN STIMULATING SCALP MARKET WITH PROGAINE launch. The firm is positioning the cosmetic shampoo as non-irritating to sensitive scalps and as "scientifically formulated to clean thinning hair." Progaine does not contain minoxidil, the active ingredient in Upjohn's topical Rx antibaldness treatment Rogaine, but is being marketed with an eye to grabbing Rogaine users and growing the Rx drug's U.S. market. Upjohn is promoting Progaine as hypoallergenic and dermatologist-tested. The shampoo does not contain the preservatives methylparaben or propylparaben found in some other shampoos, which have been found to cause sensitization reactions, the company said. The clear shampoo is free of color additives or added formaldehydes which also can be irritants, Upjohn added. The most common side effect of topical minoxidil is itching, redness and other scalp irritations in treated areas. Prograine will be available in 5 oz. and 8 oz. sizes of "normal to oily" and "normal to dry" formulas. Catalogue prices are $ 2.59 and $ 3.65; suggested retail prices will be around $ 3.90 and $ 5.50. Development of the shampoo began in 1984, according to the company, several years after the hair-growing benefit of topically-applied minoxidil began to be studied. Progaine is not an outgrowth of the October 1987 Upjohn collaboration with Procter & Gamble to develop formulation improvements and delivery systems for the prescription drug product. Upjohn noted in recently released financial data for 1988 that topical minoxidil, marketed under both the Rogaine and Regaine brand names, were among the company's fastest growing products last year. However, Rogaine U.S. sales have been slower than expected following the product's launch last September and resulted in some overstocking in distribution channels. As a result of the disappointing launch, Upjohn moved up by more than a month -- to December -- the planned kick-off of a $ 20 mil. consumer ad campaign for Rogaine that had been slated to run from January to November. "By year-end," the company noted, "our studies showed that consumer awareness was increasing rapidly." The company is not releasing the ad budget for the Progaine campaign. Upjohn will back the introduction of Progaine with a print ad campaign slated to break in March 6 issues of consumer publications such as Time, Newsweek, People, Sports Illustrated and Life. Ad copy states: "From Upjohn, a leader in the research and care of thinning hair." Rogaine consumer ads, which broke in January magazines, also appear in many of the same publications. Progaine samples will be distributed to physicians and pharmacists through Rogaine's sales and detailing force. Individual professionals could offer the product as a cross-sampler with Rogaine prescriptions. Other planned promotional activities include direct mail and point-of-purchase materials, including displays and a refund offer.(ITEM 200)#050928M001J59307# #970804M001XFCWP5# (ITEM 201)(COPYRIGHT) 1989 F-D-C Reports, Inc., The Pink Sheet, February 20, 1989

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