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MKT 471 > MKT 471 > Flashcards

MKT 471 Flashcards

1
Q

Why is pharmaceutical pricing unique?

A

pricing strategy must meet business objectives while maintaining patient welfare

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2
Q

Stakeholders who are impacted by pharma- ceutical pricing

A
  • patient
  • pharmaceutical company
  • insurance
  • government (medicare, etc) - doctors
  • supply chain members
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3
Q

Price Elasticity

A

measure of the responsiveness of the quantity of a product demanded by customers when there is a change in price

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4
Q

Inelastic demand

A

product can be priced at higher level without significant reductions in expected sales levels
brand name product that has little competition

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5
Q

Pricing Strategy

A

the pricing policies or methods used by a business when deciding what to charge for its products

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6
Q

Pricing or commercialization committees

A

serve to gather information to create pricing policy and make recommendations
composed of: brand managers, market researchers, manufacturing, regulatory affairs, and pharmacoeconomics/outcomes researchers

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7
Q

Examples of questions to ask when developing pharmaceutical strategy

A
  • is there significant need for additional treat- ment options?
  • how well do existing treatments work?
  • what is the potential size of the market?
  • is future growth expected?
  • does the product stand out from the com- petition?
  • how sensitive are decision makers to price in this area?
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8
Q

Effects of favorable formulary status

A

lower patient costs and more product usage

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9
Q

What methods do payers use to limit choice and steer patients toward preferred products?

A
  • tiered co-pay
  • prior authorization
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10
Q

Tiered co-pay

A

patients pay a particular co-payment based on what tier it is in
- tier 1: generics, lowest co-pays
- tier 2: brand name, “preferred”, co-pay $15-20
- tier 3: more expensive brand name, non-preferred, co-pay $25-75
- tier 4: specialty drugs, patient pays a %

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11
Q

Prior Authorization

A

process where physicians are encouraged to prescribe preferred medications and discouraged to prescribe non preferred medications by requiring advance approval from payers before a non preferred medication can be reimbursed

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12
Q

Grandfathering

A

allows patient already taking the medications to continue without approval even after prior authorization is implemented

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13
Q

Bundling

A

offering multiple products for sale in one pricing deal
- more popular
- less popular to maintain sales
- not viewed favorably by insurance

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14
Q

Couponing

A

free trials, low co-pays, discount on refills, etc…
1.) attract customer attention
2.) create interest in product

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15
Q

Evergreening

A

process of making minor modifications to an existing product in order to apply for and obtain new patents

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16
Q

Pricing generic medications

A
  • the product selected by the physician is usually available from a number of manufac- turers, each competing for market share
  • although physicians still choose which medication patients need, the pharmacy provider selects the company that will sup- ply the medication
  • manufacturers should focus their market- ing efforts on pharmacy providers
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17
Q

Ways physicians stay informed or updated on treatment options for their patients

A
  • medical journals
  • scientific conferences
  • peer discussions
  • independent research
  • pharmaceutical manufacturer
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18
Q

Primary promotional tactics of manufacturers

A

1.) detailing
2.) PR messaging
3.) DTC ads

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19
Q

Goal of pharmaceutical marketing

A

to create or raise awareness, trial, or usage of a given product
- heavily regulated by FDA

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20
Q

Product Claim

A

every written or spoken word claiming a benefit of the product is required to be au- thenticated by scientific data
- efficiency, safety, and improvements in quality of life must be reinforced by clinical evidence so that physicians and patients are not misled or put at risk
- must provide fair balance

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21
Q

Fair Balance

A

the risk information is balanced to the beneficial claims
disclosure of common side effects and risks

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22
Q
A

the risk information is balanced to the beneficial claims
- disclosure of common side effects and risks

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23
Q

Departments that fall under commercial operations

A

departments that generate revenue for the company
- sales
- marketing
- managed

24
Q

Types of DTC Advertising

A

1.) help seeking/disease awareness (“ask your doctor”)
2.) coming soon ads (“drug will be available in 2024”)
3.) institution ads (UMMC)
4.) reminder ads or items (pens, calendars) 5.) full product pieces (journal ads, product websites)

25
Q

Reach

A

number and type of physicians targeted by the company for specific brand
- ex: endocrinologist and diabetes medication

26
Q

Message

A

communicating feature and benefit of product
- factual and compelling to a prescriber

27
Q

Frequency

A

number of times the message is delivered to physicians
- rule of seven: this approach assumes that customers do not fully understand the message until they have heard it at least seven times

28
Q

Blockbuster era

A

has existed since the beginning of the 1990s - at height in 2005, 94 medications met the threshold requirement

29
Q

Pod approach to detailing

A

pods of representatives detailing the same products to the same set of physicians
- expensive, negative public perception
- used during the peak blockbuster era

30
Q

Blockbuster drug

A

generate more than $1 billion in annual sales for a company

31
Q

Co-promotion

A

when small companies partner with larger, more established companies to promote their products jointly as along as no conflict of interest exists
- to increase reach and frequency

32
Q

Contract Sales Organization

A

these organizations employ sales professionals who are skilled at calling on physicians and simply require training on the specific features and benefits of the hiring company’s product
- less expensive to do than hiring and maintaining sales team

33
Q

Patent Cliff

A

a situation where many branded products are reaching the end of their patent life at the same time

34
Q

Physician access

A

more people are going to the doctor causing physicians to have less time
- patients are more informed of healthcare choices
- our population is aging

35
Q

Share of voice

A

percentage of ads each brand contributes to a particular category

36
Q

Advantages to e-detailing

A
  • messages can be delivered to physicians personal device with the desired frequency and reach, and without the expense of a sales rep
  • messages can be altered and vary in length
  • two-way exchange is possible (company collects data feedback from physicians)
  • less expensive
  • delivered in more timely, organized, and objective fashion
37
Q

Public relations

A

1.) press releases
2.) help seeking ads
3.) non branded website
4.) brochures
rarely mention or discuss specific products, unless the product itself is a newsworthy breakthrough

38
Q

Disease awareness campaigns

A

most frequently and effectively used to raise awareness of a certain condition in addition to the range of treatment options
- news outlets cover events

39
Q

Ways that pharmaceutical companies encourage their doctor to talk about a disease or condition

A
  • targeted PR campaigns
  • make sure information is readily available to them
40
Q

Push and pull marketing dynamic

A

pushing product information to physicians, while patients pull those same physicians to treat their illnesses

41
Q

Creation of promotional materials/internal review team

A

starts with marketing department —> sent to internal review team LMR (legal medical regulatory, med reg, and ad promo) for protection of company intellect, copyright is- sues, and litigation concerns

42
Q

Compliance Programs

A
  • compliance with OIG guidelines is an essential function of all pharmaceutical manufacturers
  • transparency regarding all aspects of operations
  • primary change: clear separation of commercial operations from R & D and medical Affairs
43
Q

Goal of medical affairs

A

to provide objective, non-biased medical information while abstaining from sales and promotion

44
Q

Role of Medical Affairs

A

charged with being the scientific resource for both internal colleagues and external customers (healthcare providers) through dissemination of complex, scientific, fair, balanced, and non promotional drug information on a peer-to-peer basis
- does not focus on a particular drug

45
Q

Medical affairs compensation

A

quantitative and qualitative activities are used to base compensation
- can not depend on drug sales
- not FDA regulated

46
Q

quantitative activities to base medical affairs compensation

A
  • # of presentations
  • level of R & D involvement
  • # of medical conferences attended - participation in managed care
47
Q

qualitative activities to base medical affairs compensation

A
  • maintain expert level of knowledge
  • communicate scientifically to internal employees and external customers
  • comply with federal guidelines
  • respond to medical inquires
48
Q

History and role of Field-Based Medical Personnel

A
  • 1960s: Upjohn Company first deployed a team of healthcare professionals to “represent” its product line and respond to cus- tomers
  • Eli Lilly: technique of only hiring pharmacists for both traditional sales reps and field-based medical roles
  • 1980s: most companies shifted away from using healthcare professionals
49
Q

Drug Utilization Evaluation (DUE) / Drug Utilization Re- view (DUR)

A
  • authorized structured on going review
    of healthcare prescribing, pharmacist dis- pensing, and patient use of medication
  • help identify trends in prescribing within patients of a certain disease state
  • help patient outcomes and reduce cost
  • identify issues such as: drug interactions, incorrect dosage, inappropriate length of therapy, drug disease contraindications
50
Q

What is the industry standard for the education/degree of a Medical Liaison? Why is it important for ML’s to have this education

A

terminal degree in health relat- ed field (M.D., D.O., Pharm.D., Ph. D.)
- to ensure that ML’s can engage in a peer-to-peer ex- change of scientific information with healthcare leaders and build and maintain relationships with healthcare providers who have earned the respect of their peers

51
Q

Distinction between ML’s and pharmaceutical sales representatives in regards to dis- cussing scientific literature

A
  • sales reps: can not talk about off label uses at all
  • ML’s: can not bring up off label uses but if physician brings it up they can answer questions and point toward literature
52
Q

Key Opinion Leader (KOL) involvement/roles in drug launches

A

KOLs are very involved in pre launch and launching of new prescription drug

53
Q

KOL identification and criteria

A

done in house by consultant or by software programs
traditional criteria:
1.) faculty appointment at a major medical academic center
2.) proven expertise in an area by medical research grants in area or publications in peer review journals
3.) being invited as speaker to national med- ical meetings
4.) participation in consensus guidelines 5.) leader in medical associations

54
Q

How KOLs are utilized by pharmaceutical companies by department

A
  • clinical research: seek opinions on trial design, outcome measurements, or other needs within medical community
  • marketing and sales: seek advice in life cycle management, commercial advisory boards, and utilization on speaker bureaus - medical affairs: to gain advice regarding current medical trends
55
Q

Controversy over industry-sponsored drug studies

A
  • industry funds many of the published ran- domized controlled trials that show favor- able results regarding specific medications while non favorable results are not as fre- quently seen
  • manufacturers strategically fund projects aimed at providing promotional information
56
Q

Ghostwriting

A

when an original writer creates a work that is then credited to another author (leading physician)
- dishonest

57
Q

Use of Reprints

A

before handed out… need to be approved by the internal review process and fall into one of two categories:
1.) on-label: reprints of publications report- ing results of the major trials that led to product’s approval; used promotionally
2.) sales force can sometimes disseminate (off-label) publications; for unapproved products

MKT 471 (6 decks)

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