Professional Documents
Culture Documents
Introduction
Technology has prompted drastic changes in the marketing world over the past decade, and pharmaceutical marketing has not been excluded from this evolution. Faced with shifting consumer and physician media preferences and shrinking budgets - what is a smart pharmaceutical marketer to do? The task is best summed up by the words of English naturalist Charles Darwin, It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change. So change you must. The following paper overviews the latest consumer and physician digital health trends, explores digital marketing examples, and shares helpful resources for staying up-to-date on the latest digital pharma news and information.
Mobile technology has played a significant role in increasing physicians dependency on online resources 64% of doctors own smartphones and are using them to supplement their desk or laptop computer usage to be always on. Also, mobile devices help physicians to access clinical resources at multiple points throughout their day, even to at the point of care. Currently, physicians prefer to conduct easy tasks such as information-checking on mobile devices, while leaving more complex activities like CME for completion on their PCs. But as mobile browsing capabilities improve, physicians will start to use smartphones for more advanced activities than just reference purposes.
Physician engagement in Web 2.0 has been one of the hottest topics over the past few years. As a group, physicians have acclimated themselves to advanced online activities, such as watching streaming video and listening to podcasts, at a much faster rate than consumers. Doctors are also catching the social media fever. Many are collaborating in online communities designed specifically for healthcare professionals; participation in these networks doubled between 2008 and 2009. Just as the professional channel mix is evolving, so is the traditional physician-sales rep relationship. Physicians are no longer limited to in-person details for information and updates on pharmaceutical products, but can easily seek out this type of information at any time via the Internet. In light of this, pharmaceutical companies are offering physician online customer services such as customer service portals, live video reps, interactive detailing, and e-sampling. Sales reps are also digitalizing their in-person visits with tools such as tablet PCs.
Rx Connect delivers comprehensive brand information with digital media---at the pharmacy shelf next to targeted OTC products. Consumers get the information they need about the prescription product as well as the condition it treats---facilitating a more informed patientphysician dialogue.
Market Analysis
Healthcare Spending
The total global expenditure for health is now more than US$4.7 trillion a year, according to the World Health Organization, and health expenditure as a percentage of GDP has been increasing among all major economies. Spending on healthcare varies widely from country to country, as do outcomes. Nor is there necessarily a correlation between the amount of money spent and the effectiveness of the healthcare system. The United States spends more on healthcare than any other country, in both relative and absolute terms, yet its healthcare system scores poorly in terms of its overall performance, according to the Commonwealth Fund Commission, a US private foundation that supports independent research on healthcare issues. The Fund produced a report on the performance of the US health system in 2008 (National scorecard on US health system performance). The scorecard aimed to measure and monitor healthcare outcomes, quality, access, efficiency, and equity in the United States. It ranked the United States last out of 19 countries on a measure of mortality amenable to medical care.This poor performance may reflect the nature of healthcare provision in the United States. The country has several types of privately and publicly funded insurance plans that provide healthcare services. However, the private sector dominates healthcare and the United States is the only wealthy, industrialized nation that does not ensure that all citizens have coverage (that is, some kind of insurance), according to the Institute of Medicine, a nonprofit organization for science-based advice on matters of biomedical science, medicine, and health. By contrast, a publicly funded healthcare system, the NHS, dominates healthcare in the United Kingdom, accounting for more than 80% of healthcare spending in the country. Founded in 1948, it aims to provide a free, comprehensive healthcare service, with delivery at the point of need, regardless of the ability to pay. It is the worlds largest publicly funded health service, and claims it is also one of the most efficient, most egalitarian, and most comprehensive. Yet it has many critics, who argue that it is inefficient and overly bureaucratic. Other countries fund their health services in a variety of ways. According to Key Note Ltd, a UKbased market-research company, the Netherlands operates a national insurance market for its 16 million residents. Plans may operate on a for-profit or nonprofit basis. The insurance market is highly concentrated, with the top five plans accounting for 82% of enrolment. Plans typically offer coverage in all areas of the country and include all providers, although selective contracting is allowed. Children are covered in full through public funds. Premiums charged for adults represent 50% of the expected annual costs. By contrast, according to Key Note, the Swiss insurance system, which covers 7.5 million people, is highly decentralized. Only nonprofit
Country Australia Canada France Germany Italy Ireland Japan Portugal Spain Sweden Switzerland United Kingdom United States
Healthcare spending, % of GDP 8.9 10.1 11.0 10.4 8.7 7.6 8.1* 10.2* 8.5 9.1 10.8 (est.) 8.4 16.0
Japan spends around 8.1% of its GDP on healthcare, almost half the amount of the United States. Yet the Japanese have the longest healthy life expectancy on the planet. Diet and lifestyle clearly play a key role, but the countrys universal healthcare system may also be an important factor. Everyone in Japan is required to take out a health-insurance policy, either at work or through a community-based insurer, according to Key Note. The firm adds: The government pays for those who are too poor. However, 80% of Japans hospitals are privately ownedmore than in the USand almost every doctors office is a private business. The Japanese Health Ministry tightly controls the price of healthcare, down to the smallest detail. Every two years, the healthcare industry and the health ministry negotiate a fixed price for every procedure and every drug. The US-based National Bureau of Economic Research conducted a study of ten OECD countries and it points out that healthcare expenditure has been growing at a faster rate, often considerably faster, than per-capita income. In the United States, healthcare expenditure has tripled as a share of GDP since 1950, from 5% to 15% of GDP. The NBERs study found that the primary cause of the continued ramping up of healthcare costs was the provision of increased healthcare benefits. It points out that pushing up health benefits faster than per capita tax and income growth is clearly unsustainable, but that major economies, the United States in particular, currently show little sign of reining in the upward march of benefits, despite huge cost increases. If this keeps up the United States will see a doubling in healthcare costs as a
Overview of Pharmaceutical Industry The Indian Pharmaceutical Industry currently tops the chart amongst Indias science -based industries with wide ranging capabilities in the complex field of drug manufacture and technology. The Indian Pharmaceutical Industry ranks very high amongst all third world countries, in terms of technology, quality and the vast range of medicines that are manufactured. The Pharmaceutical industry has grown from mere US$ 0.3 billion turnover in 1980 to about US$ 21.73 billion in 2009-10. The country now ranks 3 rd in terms of volume of production (10 per cent of global share) a 14th largest by value (1.5 per cent of global share). One reason for lower value share is the lowest cost of drugs in India ranging from 5 per cent to 50 per cent less as compared to developed countries. Indian pharmaceutical industry growth has been fuelled by exports and its products are exported to a large number of countries with a sizeable share in the advanced regulated markets of the US and Western Europe. Many Indian companies maintain highest standards in Purity, Stability and International Safety, Health and Environmental (SHE) protection in production and supply of bulk drugs even to some innovator companies. This speaks of the high quality standards maintained by a large number of Indian Pharma companies as these bulk actives are used by the buyer companies in manufacture of dosage forms which are again subjected to stringent assessment by various regulatory authorities in the importing countries. More of Indian companies are now seeking regulatory approvals in USA in specialized segments like Anti-infective, Cardiovascular, CNS group. Along with Brazil & PR China, India has carved a niche for itself by being a top generic Pharma player. Increasing number of Indian pharmaceutical companies have been getting international regulatory approvals for their plants from agencies like USFDA (USA), MHRA (UK), TGA (Australia), MCC (South Africa), Health Canada etc. India has the largest number of USFDAapproved plants for generic manufacture. Considering that the pharmaceutical industry involves sophisticated technology and stringent "Good Manufacturing Practice (GMP) requirements, major share of Indian Pharma exports going to highly developed western countries bears testimony to not only the excellent quality of Indian pharmaceuticals but also its price competitiveness. More than 50 per cent share of exports is by way of dosage forms. Indian companies are now seeking more Abbreviated New Drug Approvals (ANDAs) in USA in specialized segments like anti-infective, cardio vascular and central nervous system groups.
Exports India currently exports drug intermediates, Active Pharmaceutical Ingredients (APIs), Finished Dosage Formulations (FDFs), Bio-Pharmaceuticals, Clinical Services to various parts of the world. Export of Drugs and pharmaceuticals from 2007-08 to 2009-10 are given below:
Year 2007-08 2008-09 2009-10 Exports (US$ billions) 6.3 8.6 9.1 Growth (in percent) 14.4 35.7 5.9
The domestic Pharma Industry has recently achieved some historic milestones through a leadership position and global presence as a world class cost effective generic drugs' manufacturer of AIDS medicines. Many Indian companies are part of an agreement where major AIDS drugs based on Lamivudine, Stavudine, Zidovudine, Nevirapine will be supplied to Mozambique, Rwanda, South Africa and Tanzania which have about 33 per cent of all people living with AIDS in Africa. Yet another US Scheme envisages sourcing Anti Retrovirals from some Indian companies whose products are already US FDA approved. Many Indian companies maintain highest standards in Purity, Stability and International Safety, Health and Environmental (SHE) protection in production and supply of bulk drugs even to some innovator companies. This speaks of the high quality standards maintained by a large number of Indian Pharma companies as these bulk actives are used by the buyer companies in manufacture of dosage forms which are again subjected to stringent assessment by various regulatory authorities in the importing countries. More of Indian companies are now seeking regulatory approvals in USA in specialized segments like Anti-infectives, Cardiovasculars, and CNS group. Along with Brazil & PR China, India has carved a niche for itself by being a top generic Pharma player. Increasing number of Indian pharmaceutical companies have been getting international regulatory approvals for their plants from agencies like USFDA (USA), MHRA (UK), TGA (Australia), MCC (South Africa), Health Canada etc. India has the largest number of USFDA -
Indian companies are now seeking more Abbreviated New Drug Approvals (ANDAs) in USA in specialized segments like anti-infective, cardio vascular and central nervous system groups. Trends Since the mid-90 the industry has been undergoing a consolidation period. Mergers involving many large and medium size companies have been common in this period. The success of the stock market has made large amounts of capital available at reasonable rates for borrowing or for raising equity. The companies involved in the mergers are biotech companies, who develop products based on living cells. Also involved are companies who have developed new technology in unlocking the genetic makeup of human. Many foreign companies have been entering the United States market because of its uncontrolled pricing structure, rapid approval processes, private and public insurance reimbursement policies and government support for basic research. Additionally, the industry enjoys many tax benefits not available in other countries, although the benefits are narrowing. The tax benefits include Research & Experiment Credit for research conducted in the United States, the IRC 936 Puerto Rican Tax Credit for possession companies, and Orphan Drug Credit for illnesses afflicting two hundred thousand or less patients. Benefits of relocation to the United States include the ability to advertise to both the medical community and direct to consumers in an effort to increase awareness and consumption. The restructuring of the United States Food and Drug Administration has had a tremendous impact in the ability of companies to bring drugs to market quickly. A tremendous lobbying effort on the part of the drug industry has resulted in the reduction of the average approval time for new drugs from two or three years to one year or less. A prime example of the quick approval process was the 42-day approval of reverse transcription drugs for HIV that stems the progression of the virus. More than half of the new drugs approved in the United States in 1998 were the first approval anywhere. Another segment of the industry that has enjoyed the changes has been the generic pharmaceutical industry. This segment may manufacture drugs based on the original product once the patent on the original chemical entity expires. The generic industry does not have to conduct the expensive clinical trials performed by innovator companies. Clinical trials are performed in order to prove a drug is safe and effective for the illness they wish to treat. Not
Conclusion
Pharmaceuticals has emerged as one of the leading industries in the Indian Inc., with the domestic market showing an unprecedented growth of around 9% to generate revenue of about INR 554.5 Billion (US$ 11.1 Billion) in FY 2009. This dramatic growth in the Indian pharmaceutical industry can be attributed to several factors such as growing middle class population, rapid urbanization, increase in lifestyle-related diseases and acceptance of health insurance. Besides, the product patent regime has provided ample support to the industry to sustain its growth pace despite the global economic downturn. Generic is emerging as one of the leading segments to be benefited by many drugs going off-patent in due course of time. According to our new research report Booming Pharma Sector in India, the Indian pharmaceutical industry is projected to show double-digit growth in near future owing to rise in pharmaceutical outsourcing and consolidation of highly fragmented industry. As exports from major part of the pharmaceutical industry in India, leading players have started expanding their reach towards the West. Thanks to investments in R&D and thriving for more and more ANDA filings, the clinical trials market is expected to grow at blistering pace in coming years. To support this evidence, we have done an extensive research and analysis of various segments of the Indian pharmaceutical market. These segments include: Domestic & Export Market, Branded & Generics Drugs, Formulations & Bulk Drugs, etc. The baseline for optimistic future outlook of the pharmaceutical market is improvement in access to medicines of Indian population. Emerging sectors like biogenerics and pharma packaging will also pave the way for the pharmaceutical market to continue its upward trend over the forecast period (FY 2010- FY 2013). The report provides thorough statistical and analytical overview of the Indian pharmaceutical market. It contains information about past, present and future trends, with focus on entire structure, composition and working of the pharmaceutical market. The report extensively discusses opportunities and challenges expected to arise within and outside the pharmaceutical market. The report also analyzes emerging sectors, regulatory environment and distribution system to identify strength and weaknesses of the pharmaceutical market. It has thoroughly examined current market trends; industrial developments and competitive landscape to enable clients understand the market structure and its progress in coming years. It also gives a brief