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Health Practice n e w s l e t t e r Volume 23/Number 6 For more information on Makovsky + Company’s Health practice, please visit www.makovsky.com/practice/health the power of specialized thinking Ties between pharma and physicians have been monitored for decades. The new twist is that every patient, physician and policy maker is now under the ethical magnifying glass. Can benign “branded” pens unduly influence prescribing pat- terns? Does free lunch make physicians consider one medical product over anoth- er? Will industry-sponsored continuing medical education lead health profession- als to favor one clinical path? Trend or Legislative Reality Regardless of economic connection, the underlying premise behind keeping pens out of sales reps’ bags is sound—conflict between science and industry cannot ex- ist. Traditional marketing worked for phar- ma in the non-digital world—educate physicians, provide treatment data and, of course, impact sales. That model was based on a regulatory and media environ- ment that no longer exists. Promotional items such as pens, free food and honoraria are under intense scrutiny. Countless op-ed articles call for transpar- ency and limitations in marketing practic- es, including a call to action by prominent physicians in JAMA (April 1, 2009 “Profes- sional Medical Associations and Their Rela- tionships With Industry: A Proposal for Con- trolling Conflict of Interest”). Five states (MA, ME, MN, VT and WV) and the District of Columbia created payment disclosure laws to track money and in- kind gifts physicians receive from pharma. Congress is debating passing the Physi- cians Payment Sunshine Act of 2009 call- ing for a searchable database of all phar- maceutical spending by state and doctor in an effort to curb undue influence. When one constituency focuses on a per- ceived wrongdoing because of small gifts to physicians, it has a negative effect on multiple levels. We need to return to our communications roots focused on life- altering medicine helping health profes- sionals and consumers make better, more informed choices. Problems—Solutions? Pharmaceutical companies are embrac- ing greater transparency, offering volun- tary disclosure, and PhRMA issued new member guidelines. Curbing industry involvement is evident at major medical meetings with scaled-back exhibit booths and missing promotional items. But, more than AWOL pens and name badge lan- yards, the twofold concerns are the right to guaranteed expression and honing a new connectivity model for ‘patient prob- lem—clinical solution.’ Rehabilitating relationships and percep- tions demand we move from one-way promotion toward two-way communica- Gift Giving Ban: Boon or Bust for Communicators? Strategies Published by Makovsky + Company

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Page 1: Health Strategies Gift Giving Ban

Health Practice n e w s l e t t e r

Volume 23/Number 6

For more information on Makovsky + Company’s Health practice, please visit www.makovsky.com/practice/health

the power of specialized thinking

Ties between pharma and physicians have been monitored for decades. The new twist is that every patient, physician and policy maker is now under the ethical magnifying glass. Can benign “branded” pens unduly influence prescribing pat-terns? Does free lunch make physicians consider one medical product over anoth-er? Will industry-sponsored continuing medical education lead health profession-als to favor one clinical path?

Trend or Legislative RealityRegardless of economic connection, the underlying premise behind keeping pens out of sales reps’ bags is sound—conflict between science and industry cannot ex-ist. Traditional marketing worked for phar-ma in the non-digital world—educate physicians, provide treatment data and, of course, impact sales. That model was based on a regulatory and media environ-ment that no longer exists.

Promotional items such as pens, free food and honoraria are under intense scrutiny. Countless op-ed articles call for transpar-ency and limitations in marketing practic-es, including a call to action by prominent physicians in JAMA (April 1, 2009 “Profes-sional Medical Associations and Their Rela-tionships With Industry: A Proposal for Con-trolling Conflict of Interest”).

Five states (MA, ME, MN, VT and WV) and

the District of Columbia created payment disclosure laws to track money and in-kind gifts physicians receive from pharma. Congress is debating passing the Physi-cians Payment Sunshine Act of 2009 call-ing for a searchable database of all phar-maceutical spending by state and doctor in an effort to curb undue influence.

When one constituency focuses on a per-ceived wrongdoing because of small gifts to physicians, it has a negative effect on multiple levels. We need to return to our communications roots focused on life-altering medicine helping health profes-sionals and consumers make better, more informed choices.

Problems—Solutions? Pharmaceutical companies are embrac-ing greater transparency, offering volun-tary disclosure, and PhRMA issued new member guidelines. Curbing industry involvement is evident at major medical meetings with scaled-back exhibit booths and missing promotional items. But, more than AWOL pens and name badge lan-yards, the twofold concerns are the right to guaranteed expression and honing a new connectivity model for ‘patient prob-lem—clinical solution.’

Rehabilitating relationships and percep-tions demand we move from one-way promotion toward two-way communica-

Gift Giving Ban: Boon or Bust for Communicators?

StrategiesPublished by Makovsky + Company

Page 2: Health Strategies Gift Giving Ban

Pantone 604 C

NOTE: The yellow in this logo has been changed to PMS 604 C specifically for the Strategies newsletter. That job prints in two spot colors (5405 and 604).

Pantone 5405 C

tion. Establishing dialogue, creating relationships, giving brands a platform is where public affairs experts step in.

Five Thoughts for Greater Customer Connectivity

1. Embrace transparency to strengthen advocacy trust2. Be a solution to the customers’ social-health problem3. Listen—create the landscape for discussion4. Explain brand science early5. Cultivate relationships with advocacy groups and media

1. Transparency equals trustTransparency is the heart of productive communications. The regulatory environment requires that public affairs professionals are part of the marketing process. We have the opportunity to reassert patient care as the focal point by engaging in transpar-ent dialogue about science and its care impact. When “reminder” items outweigh clinical trial updates, articles published and CME calendars, pundits question the intent of hidden information.

One disgruntled employee or patient has inordinate power to share his or her point-of-view as virtual “facts.” With reporters competing for airtime with “guilty before innocent” eye-grabbing bloggers, the burden of truth falls on pharma. Do not assume people will recognize your good intent—especially if they have to seek out information. Let customers hear from you directly on any upcoming clinical or information endeavor.

2. Offer solutions to real health problemsPromotional dollars once earmarked for reminder efforts can forge advocacy relationships around pressing health problems. Avoid one-off efforts and seek enduring campaigns improving patient care and reducing costs. Just because we’ve always given out pens doesn’t mean that we should continue. In some disease states, the “brand” pen for doctors could become an important patient compliance reminder.

Whether using innovation to reduce hospital-acquired infections or tackling compliance issues for Chronic Obstructive Pulmonary Disorder (COPD)—promotional spending can be redirected to-ward improving outcomes. Focusing on improving patient out-comes rather than providing gifts is a truer and more acceptable method of engaging communities.

3. Social media creates communityPharma is still finding its way with social media. Some companies use it for promotional purposes while others treat Facebook-like communities as traditional one-way vehicles. But, these tools are best used as intended—driving interactive dialogue between chosen peers.

Many companies fear handling potential reportable events result-ing from social media, yet a Nielson study found only 0.2% of com-ments on these sites rise to a reportable adverse event. Though concerned about uncontrolled conversations, pharma is well served relying on professionals skilled at developing dialogues—their communications department and outside agency partners.

4. Stakeholders influence each otherMisunderstood science, medical notable naysayers and top-tier reporters signal big trouble. For years pharma focused on posi-tive scientific results—if the results were good, communications were open. The current environment suggests companies re-consider investing in explaining brand science. Though results may not be available, explaining protocol early—pluses and minuses of possible outcomes—can reduce misunderstanding. Company medical directors must be accessible public affairs voices outlining protocols and enrollment to forge relationships with advocacy groups.

5. Don’t wait to meet third-party advocates and mediaTrust is the building block to relationships, and relationships—built through conversations and word of mouth campaigns—are a brand’s foundation. Public affairs professionals build these pro-grams with traditional media, but also with other societies such as patient advocacy groups, grassroots coalitions, trade groups, social media communities and more. Offering ways for people to engage means they are more likely to discuss that experience with friends and family.

The day of the branded pen is behind us. But, the importance of relationships remains steadfast and critical. Public affairs and communications expertise should be brought to the forefront in tackling patient-care issues. Physicians will continue treating pa-tient ills…even if it means writing a prescription with their own pen. The bigger opportunities await savvy marketers and public affairs experts who can outline those treatment solutions.

Contact Gil Bashe, APR, Executive Vice President212.508.9672 • [email protected]

Kristie Kuhl, JD, Senior Vice President212.508.9642 • [email protected]

Marian Cutler, Senior Vice President212.508.9641 • [email protected]

About Makovsky + CompanyFounded in 1979, Makovsky + Company (www.makovsky.com) is today one of the nation’s leading independent global public relations and investor relations consultancies. The firm attributes its success to its original vision: that the Power of Specialized Thinking™ is the best way to build reputation, sales and fair valuation for a client. Based in New York City, the firm has agency partners in more than 20 countries and in 35 U.S. cities through IPREX, the third largest worldwide public relations agency partnership, of which Makovsky is a founder.

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