Marketing Warfare: Monsanto and Merck Engage in Arthritis Drug Dispute

Strategic Insights -

In a bitter dispute between pharmaceutical giants, Monsanto and Merck & Co. have clashed over their new arthritis drugs, Celebrex and Vioxx. The controversy began when Merck announced that Vioxx provided faster and longer-lasting relief in a study of 272 patients following dental surgery. However, Monsanto and its subsidiary, G.D. Searle & Co., accused Merck of comparing its results against a higher dose of Celebrex. Meanwhile, Merck defended the study, stating that the results were preliminary and would undergo further analysis. The two companies are vying for market share in the new class of COX-2 inhibitors, which promise fewer side effects than traditional arthritis medications.

Key Takeaways:

  • Merck's Vioxx study, conducted on 272 patients, showed faster and longer-lasting relief compared to Celebrex, according to Merck. However, Monsanto disputed the study's design and results.
  • The FDA requires both Celebrex and Vioxx to carry warning labels about the risks of gastrointestinal bleeding and ulcers, despite both companies' claims of fewer side effects compared to traditional NSAIDs.
  • Both companies are still running clinical tests to persuade the FDA to expand approvals for other diseases and to loosen label restrictions.
  • Merck's stock gained $1.25, closing at $69.87 1/2, while Monsanto's stock gained 62 1/2 cents, closing at $42.12 1/2.
  • As of June 7, doctors had written approximately 5.3 million prescriptions for Celebrex, making it the fastest-starting drug in U.S. history.

Statistics:

  • 272 patients participated in Merck's Vioxx study.
  • Merck's stock gained $1.25, representing a 1.8% increase at the close.
  • Monsanto's stock gained 62 1/2 cents, representing a 1.5% increase at the close.
  • As of June 7, doctors had written approximately 5.3 million prescriptions for Celebrex.
  • Celebrex reached most pharmacies in mid-January.
  • Food and Drug Administration (FDA) approved Vioxx on May 20 for osteoarthritis, menstrual pain, and acute pain.

Sources:

  • [New York Times, June 22, 2000]