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October 31, 2018 0

A revolution in pharma marketing

Did you know?

  • 72% of patients go online to learn about their condition.
  • And 1 in 4 turn to the internet before speaking to a doctor.
  • Yet only 3% of healthcare advertising budget is spent on digital. And most digital DTC advertising is ineffective.

Are you making the most of DTC digital advertising? This summer, DTC Perspectives and MetrixLab partnered up to bring you a webinar led by Frank Chipman, MetrixLab’s SVP and Healthcare Practice Leader. Click here to watch the recording of the 40-minute webinar to find out how pharmaceutical brands can benefit from this huge opportunity, including coverage on:

  1. The benefits of and growing focus on DTC digital advertising for pharma brands;
  2. Clear guidelines on how to significantly improve the impact and ROI of your DTC digital ads;
  3. A short Q&A session following the presentation.

For more on this topic, you can also read MetrixLab’s whitepaper about digital advertising for pharma companies. Plus, discover some best practices for effective pharma and OTC Facebook mobile ads, as revealed in their recent study for Facebook.

 

Click here to view the original posting of this content.

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October 22, 2018 0
We all know the final price patients pay for prescription drugs is as complex as determining whether life exists on other planets. In no other consumer category do users have no idea what the product will cost. We all can estimate the price of a Mercedes, a four bedroom house in our neighborhood, a new suit, a jug of Tide, or a gallon of gas. We may not be exact but we would get reasonably close. Prescription drugs are unique in that an advertised product can cost $50 a month or $50000.
We would have no idea from watching the DTC ad whether that drug is the $50 or $50000 product. Even our doctor would not know because 72% say in a study by Deloitte they have inadequate price information. Congress wants to remedy that by requiring DTC advertisers to put price information in DTC ads. Consumers widely support this idea and it is from Democrats, Republicans, and Independents, at 83%, 72%, and 73% respectively. HHS Secretary Alex Azar is going ahead with the new policy of requiring price disclosure in drug ads.
Bob Ehrlich
“DTC advertisers will face a new FDA guidance on price disclosure.”
-Bob Ehrlich
Of course, that idea is fraught with problems. It is a well-meaning solution but would cause a raft of other problems. We all know the out of pocket cost of our drugs is dependent on our insurance coverage, our deductible/co-pay, formulary status, treatment protocol, and availability of similar drugs. That means you could pay nothing for a $100000 cancer drug, and more for your $100 a month depression drug. Consumers would benefit from knowing what they would actually pay, but that is not possible to do in a voice over or super on screen.
What insurers and government payers really want to do is discourage DTC advertising of expensive drugs. They think that by forcing price disclosure, the premium price drugs would be advertised less because those drug companies would face consumer backlash once price is part of the advertisement. I have wrestled with the positives of adding price to a DTC ad. I can see some benefit giving a heads up to a potential patient that the premium priced drug may cost a lot and therefore may not be covered or restricted to use after cheaper alternatives have been exhausted.
On the other hand, a patient may misinterpret that price as being unaffordable and not pursue further even though it might not cost them much in the end. I come back to the conclusion that discussing price in the ad would probably confuse consumers more than help them. If I were a policy maker I would focus on the doctor by giving them tools to determine likely out of pocket cost for their patients. They already have the patient insurance information so determining coverage status and final cost should not be too difficult to estimate.
I understand the reason insurers and government payers dislike DTC Ads for expensive drugs. It is a legitimate argument that some of these drugs might be only marginally better than cheaper treatments. DTC Ads create demand and put pressure on payers to cover those drugs. An insurer is placed in a tough position of being the “bad” guy by not covering the latest drug. While that may be a consideration, the restricting of advertising is not the best solution. Insurers need to make their case on comparative efficacy to both doctor and patient. Insurers and patients should not want to pay for drugs with minimal incremental benefit. That case is better made downstream from an awareness DTC ad.
DTC advertisers will face a new FDA guidance on price disclosure in the next few months. It will be just a super or voice over stating the list price for a one month supply. This whole exercise is political and unfortunately will not help consumers. What might help more is the drug industry decision to offer comprehensive price information on their branded web sites announced 10/15 by PhRMA. I doubt any drug maker will drop DTC over this requirement although it may give the highest price drugs some cause for concern.

Bob Ehrlich


October 2, 2018 0

Nathan “Nate” Lucht has joined Rx EDGE® Media Network as President and CEO, as it was announced in a news release yesterday. He will take the reigns from former CEO, Jim O’Dea, who will continue on with the company as Chairman. Having held leadership roles with companies such as General Mills, Boston Consulting Group, and IRI, Lucht has an established track record of success from his background in the CPG, consulting, and data and analytics service industries. “He is experienced in leading organizations, establishing business strategy, and leveraging data and analytics to achieve results measured by not only earnings growth but also in driving customer engagement and loyalty,” stated the news release.

Jim O’Dea shared that they “are thrilled to have Nate join us and lead the next phase of the company’s continued growth strategy.” With Lucht adding, “As part of our industry’s unique media mix, pharmacies are in the very best position to be where potential patients are receptive—and motivated to act. I am looking forward to building on the company’s current strategy and collaborating with the team to develop new strategies and ideas to help our clients reach more consumers and grow their businesses.”

Rx EDGE Media Network, a division of LeveragePoint Media LLC, is a leading provider of consumer media solutions distributed through a network of 30,000 retail pharmacies. Having partnered with more than 175 brands from 70 pharmaceutical manufacturers across a variety of therapeutic categories since 2000, Rx EDGE programs provide health information and education to consumers at a critical point-of-care touchpoint.

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September 26, 2018 0

According to the fifth and final chapter of the eBook, Modern Pharma Marketing: Pharma’s Data-Powered AI Revolution, the authors from Intouch Solutions and Digital Health Coalition (DHC) look ahead to 2023. They note “[w]e believe that AI today is analogous to the ‘e’ revolution of the 1990s. By 2023, we won’t be talking about AI-powered solutions – the same way that we eventually stopped talking about ‘e-business.’ Terms that specify a technology’s inclusion stop being used when the technology becomes an assumed part of life.

“So: must you run out and create an AI project today to keep up appearances? Absolutely not. But AI is going to become a fundamental part of modern pharma marketing in fairly short order. This will happen in both blatant and subtle ways – from specific AI tools, to behind-the-scenes use of AI technology.” Among their predictions are: how AI will be used to help us better collect, analyze, and manage data; the gradual implementation of technology into our everyday lives, including providing us with better predictions or doing more with less instruction.”

Mark Bard, DHC co-founder, was quoted for the chapter: “AI is becoming part of the healthcare delivery system at every step. In a world where AI powers clinical decisions by providers and payers, the rules of engagement – and influence – evolve. Pharma and medical device companies must become conversant with the technology and algorithms to understand where they stand and how to optimize the role of products within the new world of data-driven medicine.”

Click here to read the latest and final chapter.

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September 26, 2018 0

Breast Cancer Healthline launched shortly before Breast Cancer Awareness month in October. This new app provides 1:1 support for patients, survivors, and caregivers through an online community that offers shared experiences, advice and encouragement, as well as the latest news, research, and information, all in real-time. As stated in the news release, “Designed by Healthline to empower people to live beyond their disease through support, hope and knowledge, the Breast Cancer Healthline app offers:

  • Peer support with many ways to connect, from one-to-one messaging to six group chats  accessible anytime, anywhere;
  • Personalized guidance and customized content for both patients and caregivers;
  • Access to meet other members and discuss whatever is on their mind, like self-care, nutrition, relationships and work;
  • Breast cancer content that is medically reviewed, socially inspired and data-driven;
  • A single destination where each member understands that they are not alone.”

Ann Silberman, a current user and patient/survivor, was also quoted in the news release, saying, “My matches have been about my age and stage, so we’ve touched on our worries and fears. It’s incredibly helpful to have the matching system. Because I’m stage 4, travel is hard and without the online world I would not be able to even talk to people with my similar diagnosis.” The app is available for both Android and IOS. It has been featured as one of Apple’s Appstore’s “New Apps We Love” since it’s June premiere.

Healthline is the fastest growing consumer health information site, having reached 67.3 million unique visitors in August 2018, 53 million of which were from the US, according to comScore. As noted in the news release, the company’s property domains – Healthline.com and MedicalNewsToday.com – saw significant gains over the past year: Healthline.com posted a 62% growth in monthly unique visitors vs August of last year and MedicalNewsToday.com saw a +206% increase when compared to August 2017. This helped Healthline debut in the top 50 digital media properties according to comScore.

As per the news release, “Our plan for 2018 was to increase people’s access to Healthline properties, in order to touch more people, improve health and change lives,” said David Kopp, Chief Executive Officer of Healthline Media, Inc. “I’m proud that our team’s active listening to the public, online queries and proactive content development is meeting people’s needs and attracting more users, making Healthline one of the fastest growing digital media properties in the health information category.”

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September 26, 2018 0

Sponsored Content

You’re likely in the thick of planning for 2019 (caffeine in hand!). If you’re following in the footsteps of other pharma brands and agencies, there’s a good chance you’re looking to include point-of-care (POC) tactics in your plans: According to Medical Marketing & Media Healthcare Marketers 2017 Trend Report, 36% of pharma brand marketers expect to increase their POC marketing spend this year.

Great stats that show point of care is on the rise! That said, it is still somewhat of a niche channel and can be complex compared to traditional channels. To help further your POC planning efforts, here are some helpful industry resources I recommend:

  • Why POC: A quick look into the promotional effectiveness POC generates to support your brand.
  • POC Buyer’s Guide: What standards and questions should you ask in choosing a point of care investment?
  • Auditing and Verification Standards: As the POC3 Buyer’s Guide advises, brands and agencies need to be fully up-to-date on network verification efforts of their potential POC partner. This is an inside look at what we do at PatientPoint (and I like to think we set the bar high!).
  • Measurement Glossary: Your cheat sheet for better understanding the terms and research methodologies behind POC measurement approaches.

What are the challenges you see in planning for point of care? One that I see has risen is the need for a common currency: Is it doctors? Locations? Impressions? It’s critical to compare apples to apples when putting that buy in a spreadsheet, as practices are definitely not created equal.

According to the American Medical Association, for the first time in modern U.S. history, less than half of doctors own their own medical practice. Rather, as the New York Times reported, 43% of all HCPs are now employed by top hospital groups and health systems. So a large practice brings much more value to a brand than a 1-2 doctor practice, which would be missed when just counting locations as the sole “currency.” Thus, my vote is for the currency of HCPs! It’s how pharma targets, and it’s how we recruit providers to be a part of our growing network.

At PatientPoint, we have 80 full-time employees working with HCPs/systems across the country and we’re investing $25 million into health systems for greater patient and physician engagement. We’re also committed to growing in other areas where client impact will be the greatest:

  • Primary care: Expansion to more than 25k high-value primary care HCPs by EOY 2019
  • Continued growth to deliver unprecedented impact in oncology of nearly 40% of all volume
  • Launching patient and physician platforms for the neurology specialty in 2019

All of this is being done to ensure you gain the most value out of your POC investments. I want to hear from you – what do you think the common currency should be in measuring POC effectiveness? Let me know at linda.ruschau@patientpoint.com or (513) 936-3549.

Linda Ruschau

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September 5, 2018 0

The Senate recently passed an amendment to a larger health care bill that requires drug prices be disclosed in DTC Ads. The Durbin amendment was adopted with bipartisan support. It really just gives HHS a million dollars to study a way to require the disclosure. What is clear is this idea has strong support from President Trump, Congress, HHS Secretary Azar, and the American Medical Association. So, like it or not, the drug advertisers may be forced to add some price information to ads.

Bob Ehrlich
“Drug makers may be forced to add… price information to ads.”
-Bob Ehrlich

On the surface, that list price disclosure seems reasonable. We see MSRP in car ads, so we know whether it is a premium or economy car. Not that we don’t know that already but it is not unreasonable. For cars, we know we will likely pay somewhat less than MSRP but we do know the range a Mercedes will cost us. Congress thinks consumers deserve to know the price of drugs they see advertised. To Congress that seems like it would help consumers decide if this advertised drug should be considered.

Drug pricing is not like car pricing. Consumers pay much less than the list price and sometimes pay nothing for the $50000 drug for cancer. Admittedly, drug pricing is a Byzantine process that confounds most of us. Each insurance company, PBM, and government payer negotiates prices. Each consumer depending on their insurance pays a different price no way near the list price. Sometimes the consumer would pay out of pocket more for their OTC cough medicine than the $50000 cancer drug.

So how should drug companies disclose drug prices? If the list price is not anywhere near what consumers pay, then how does disclosing it help them? It does not. It helps insurance companies in making DTC more difficult for drug companies to execute. The knowledgeable legislators know that if they force drug makers to talk about price that may discourage them from doing DTC Ads for expensive drugs. Drug makers advertising the $100000 cancer drug may decide that DTC is not worth trying to explain the complexities of drug pricing or face the barrage of criticism for having a sticker shock price.

I think this is the real reason for this amendment. Embarrassing drug companies they hope will put a chill on DTC for cancer drugs, biologics for arthritis, Crohn’s, and other new premium drugs. Of course, all drugs will face a guidance on how pricing needs to be discussed. Somehow FDA will make disclosure a time consuming step in a DTC ad. That will add 10-15 seconds to the ad and may make them difficult to execute. Their hope is to get drug companies to stop doing DTC.

So the good news is it will take FDA a while to study and draft guidance for disclosing price. This lag may allow the powerful advertising lobby to show how impractical this disclosure requirement will be. My guess is we may have some compromise that speaks in terms of ranges of price. That is something like “most patients will pay much less than the price listed depending on your insurance coverage.” Or, drug makers may be able to say “the average price paid by consumers is x.”

It may be illegal to require drug makers to disclose price under commercial free speech grounds. I am sure the advertising lobby will argue this inhibits commercial speech. They would have a strong case based on precedent.

My advice to the agencies is to be ready to deal with adding some price statement but I am sure it will be a few years before FDA can figure out how best to do this. They research everything they do and that will take a long time to study. DTC price disclosure sounds great but is just a bad idea that will not help patients.

Bob Ehrlich


August 30, 2018 0

The latest chapter in the ebook, Modern Marketing: Pharma’s Data-Powered AI Revolution, was released this Tuesday by Intouch Solutions and Digital Health Coalition. Chapter 4, Ask the Experts: The Pharma POV, revealed that “there are significant shifts away from AI being ‘not an issue today’ to ‘becoming very important’ in 2019” as 38% of respondents ranked AI as “very important” for 2019 (vs 25% for 2018). Perhaps more tellingly, just a mere “8% of pharma executives rank AI as having very low importance for 2019 – down from 21% in 2018.”

The surveys conducted found that while pharma is still learning about AI and all it has to offer, some are already using AI for marketing (26%) or plans to use it are underway (30%). As the ebook noted, while companies would logically not chase every fad technology, “the greatest potential driver of future (or continued) investment in AI is … better customer insight.” Of the pharma executives surveyed, 17% are already reported a measurable value regarding better customer insights. “Beyond that, the second area is automating routine business processes (14%), following by increased efficiency (8%), and improving customer satisfaction (8%).”

Click here to access a copy of the ebook, which shares additional survey results, insights, and interviews with industry KOLs.

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August 30, 2018 0

Novo Nordisk launched a branded DTC campaign for Ozempic, a once-weekly GLP-1 injectable prescription for adults with type 2 diabetes that, along with diet and exercise, may improve blood sugar. The national TV spot is set to the catchy 1970s song, “Magic” by Pilot – but uses altered lyrics to educate consumers about the treatment, as well as its risks and benefits. According to the news release, the commercial “portrays typical people living with type 2 diabetes who are working to meet their treatment goals, while participating in everyday activities,” such as a firefighter at his station interacting with community members; a farmer helping a couple picking fruit and vegetables; and a woman visiting an indoor conservatory with her family. The 90-second ad, which shows the actors replying “Oh!” to the same beat of the song as they learn something new about Ozempic, premiered on August 1st.

Ozempic’s campaign is also supported with a print ad and website. The brand received FDA approval in December 2017 for adults with type 2 diabetes, and along with diet and exercise, may improve blood sugar.

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August 29, 2018 0

As Peter Drucker, renowned educator, management consultant, and author, said, “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” This mantra holds true with multicultural marketing in the pharmaceutical industry, especially with Hispanic and Latino populations. Successful pharmaceutical marketing amongst the Spanish groups should focus on providing personalized care to the right individual at the right time in the right place thereby expanding upon the basic tenet of the Affordable Care Act which reaches all Americans.

Below are a few cultural considerations that increase industry profits by positively impacting the development of strategies for pharma marketing to Hispanic and Latino consumers who experience customized care.

Family Dynamics vs. Individualism

  • Group interdependence among family is at the center of the Hispanic world. Affiliation, cooperation, and group activities are weighted heavily as Latinos understand there is strength in numbers. Their health decisions rely on an extended family model and are typically made after consulting various family members. Opinions from adult children of the older generation are valued extensively. Pharma branding with marketing campaigns needs to be family-focused.

Imagery vs. Text

  • In the Hispanic culture, a picture is worth a thousand words. Incorporating culturally embedded cues into pharma marketing that reflect attire, family values, symbols, ethics, rituals, traditions, material objects, and services in their culture, stimulate how these consumers respond to the pharma industry. Through this identification process both their self-image and confidence in pharma’s judgment of prescription medication is enhanced, resulting in a change in their attitude towards the brand and eventual increased brand acceptance.

Technology Media vs. Traditional Media

  • In the past, it was widely believed that the only effective way to deliver Spanish-language pharma marketing messages was through traditional media, such as the television networks Telemundo and Univision. However, the newer generation of Hispanics on the go are not as interested in traditional media; they are more interested in smart phone technology and social media sites. One in three are the primary pharma decision makers as caregivers of an older generation of family household members and make their choices by engaging with technology media. They are three times more likely to use their smart phones to decide about pharma for themselves and other family members. Pharma marketing via technology media will soon become a leading strategy that is mandatory.

Fatalism vs. Optimism

  • Many Latinos believe that destiny is predetermined and little can be done to change outcomes. For example, they may believe that death is inevitable after receiving a cancer diagnosis and also believe that any type of prescription drug cannot improve the chance of survival because it is out of their control. A Hispanic participant in a recent NIH study sorrowfully stated, “I worked with a person who had arthritis and was going to get cortisone but the last time she went to get it at the hospital, she didn’t return home. Instead, she went to the cemetery.” Pharma marketing must help Hispanics move beyond this mindset by reinforcing examples of positive outcomes in their culture with marketing campaigns targeted at patient support groups on social media, such as Facebook, that encourage pharmaceutical use to recover from an illness.

Natural Healing Remedies vs. Prescriptions

  • Home remedies tend to be the first medicinal approach used in the Latino culture prior to visiting a medical professional. However, often times these home remedies are more detrimental than beneficial. For example, recently Hispanic parents treated their infant with star anise tea to cure colic, which resulted in the infant suffering from seizures and needing to be rushed to the emergency room at a Miami hospital. Pharma marketers should see this as a new opportunity to gain market share by targeting Latino consumers with public service announcements about the dangers of consuming natural healing remedies in lieu of advanced pharma medications with proven results.

High Power Distance vs. Low Power Distance

  • Pharma marketing in the Spanish culture is impacted by high power distance because Hispanics conform to a hierarchy where everybody has a place in the world which needs no further justification. On the other hand, in a low power distance culture, inequalities of power between doctor and patient require further justification for acceptance. For example, when doctors prescribe a certain brand of medication to Latinos, often times the pharmaceutical is not questioned since the doctor is viewed as an authority figure not to be doubted for fear of appearing disrespectful. Pharma companies may gain a competitive advantage by providing guides to Hispanic patients describing the brand’s impact and side effects in plain, simple, straightforward, 3rd grade level Spanish language for additional motivational encouragement to stay on a medication regimen with a specific brand.

In summary, minorities are increasingly becoming the new majority and the so-called “average” pharma consumer is now interacting on a complex and multidimensional landscape. Knowing the customer is most likely the single most important concept of a flourishing pharma market across cultures, and in particular with the Hispanic and Latino groups. This growing diversity has had a substantial economic impact as shown by an increase in pharma spending power that has significantly encouraged marketers to take into account various cultural characteristics when formulating a winning marketing strategy.

 

Resources

Barker, KK and Guzman, CEV. Pharmaceutical direct-to-consumer advertising and US Hispanic patient-consumers. Sociology of Health & Illness. 2015 Nov; 37(8):1337-51. doi: 10.1111/1467-9566.12314. Epub 2015 Aug 3.

Katz JN, Lyons N, Wolff LS, et al. Medical decision-making among Hispanics and non-Hispanic Whites with chronic back and knee pain: A qualitative study. BMC Musculoskeletal Disorders. 2011;12:78. doi:10.1186/1471-2474-12-78.

Pinedo, Diana. (2018). The state of multicultural marketing in 2018. Healthcare Success.

Multicultural marketing: Embrace the New Normal. (2016). PM360 Online.

The Case for Culturally Competent Health Marketing. (2016). Newlink America.

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