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Pharma - Sales & Marketing - today and tomorrow

byMukesh Agrawal

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Unethical practices resulting in huge financial losses for Pharma Industry

CompanyTotal Penalty

Violation(s) Year

Major Drug Product(s) involved

Pfizer $2.3 biUnlawful promotion / kickbacks

2009

Bextra / Geodon / Zyvox / Lyrica

Eli Lilly $1.4 bi Unlawful promotion

2009 Zyprexa

Serono $704 mi

Unlawful promotion, Kickbacks, Monopoly practices

2005 Serostim

Purdue $601 mi

Unlawful promotion

2007 Oxycontin

Off-label promotion and kick backs are the few of the

biggest reasons of penalties

Compliance issues for the pharma industry on the rise and hurting badly

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Pressure on Marketing

Why unethical behavior ?

New Drug approvals

R&D Spend

Share of Revenue from Blockbuster drugs

Problem more deep rooted than it appears

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Can unethical marketing be dealt with by setting stringent codes of practice ?

SOLUTION

+Pressure on Marketing

New Drug

approvals

R&D Spend

Share of Revenue from Blockbuster drugs

Avg face time spent by doctors with Sales Rep

Traditional Sales and Marketing

effectiveness

Sales force restructuring

(Improve Sales force

effectiveness)

Holistic approach required to solve the

problemIntroduce Alternate Channels (Improve marketing

effectiveness)

Reduce sales and marketing costs

Increase R&D relevance

(improve health outcomes)

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Reduced pressure on marketing and hence increased discipline

Prob

lem

s

Solu

tions

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Reduction in prescribing power of physicians adds another complexity

Traditionally prescribing power with Medical practitioners

Government/ Regulators/ Payers

Medical Practitioners

Retail Pharmacies

Patients Government/ Regulators/ Payers

Medical Practitioners

Retail Pharmacies

Patients

Prescribing power reduced for medical practioners, Payors add outcome based

guidelines

Pharma companies need to add institutional focus on sales and

marketing

Earlier

NowR

esul

t of

O

utco

me

base

d ap

proa

ch

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Pharma companies need to restructure their sales force through Key account

management modelImprove Sales effectiveness and

reduce sales and marketing costs1 3+Solution

• replace large sales teams with key account managers and specialist advisers

• Targeted sales vs. Mass market• Customer centric vs. product centric• Matrix structure of account• Shift of prescribing power requires aligning

decision makers• design more customized campaigns• Targeted focus on policy makers and payors• Defining product as services, programs,

physical product and financial offerings

reduce sales costs

Improve sales effectiveness• Increasing the

number of calls with Physicians

• Increasing the length of calls

• Effectiveness of the message delivered.

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Sales and marketing channels at a glance

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Pharma companies need to augment Sales force through alternate channels to engage with Medical practitioners

• eLearning, mobile learning for Sales reps

• Multi channel integration• E-detailing• Interactive voice

detailing• Tablet PC’s• Video-conferencing• Data specific websites • Physician portals

Doctor’s Online community Sermo.com – “ask Pfitzer”

Improve Sales and marketing effectiveness at lower cost

2 3+Solution

• Allows Sales reps to be more responsiveImprove Sales and Marketing

Effectiveness• Create a pull effect for information

for physicians• Making information available

based on physicians time availability and on their preferred medium

• Sales reps can play consultative role

• Sales reps better equipped to respond to physician’s needs• Extremely powerful tool to create

pull effect for physicians – Need based advocacy provided by pharma company

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Use the power of analytics to further improve your marketing effectiveness

• Closed loop marketing

Detailing

Analyze preferences, prescribing

behavior

Adjust marketing messages

Improve Sales and marketing effectiveness at lower cost

2 3+Solution

Targeted and customized marketing

messages to physicians to help improve prescribing

outcome

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Create Pull effect from patients and get patient insights to better serve them and hence improve health outcome

Internet platform used for number of reasons• Improving compliance to treatment regime• Feedback for drug administration issues• Insight on Drug efficacy level• Disease awareness• Ensuring drug safety related information easily accessible by

patientsExamples• Patient Online communities sponsored by Pharmaceutical

brands e.g. MSWatch, CFVoice, Crohn’s and me• Pharma company’s youtube pages such as J&J’s• Phama company’s facebook and twitter pages such as

Novartis breast cancer awareness page, Merck’s cervical cancer

Objectives – Increase health care – Improve health outcome – Pharma 3.0

Increase R&D relevance(improve health outcomes) 4

Solution

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Thanks