In today’s market, we see life sciences companies facing a new landscape, navigating the many dominating opinions from government officials and the public. It is increasingly difficult to make big profits on new drugs, so, for the first time in history, pharma companies are under pressure to monitor and improve the effectiveness of their marketing.
So how did we get here? Why do pharmaceutical executives need to pay attention—more than ever before—to the issues surrounding transparency and commercial pressure?
Let’s break down today’s climate. Identifying new drugs is becoming harder, with steadily increasing research and development (R&D) costs. That means a very high price to bring a new drug to the market, and a need to do that effectively. At Pharmagin, we understand today’s landscape and offer the perfect solution to partner with you through all of these ups and downs shaping the industry.
Transparency and Regulation Increasing in Pharma Industry
The Physician Payments Sunshine Act (best known as the “Sunshine Act”) brought federal regulations that have forced pharma companies to capture data and report annually on the complete details of aspects like their marketing. The Sunshine Act was passed to increase transparency of financial records and any transfer of value between manufacturers and health care professionals. The increase in transparency regulations had many wondering if drug companies would be exposed for spending more on marketing than actual R&D costs.
Pharmagin’s technology is designed to ensure that pharma marketing programs are compliant with the Sunshine Act and other similar regulations. What are you spending on marketing? What is your marketing achieving? How can you improve the effectiveness of your marketing each year?
Since the healthcare overhaul legislation was passed in 2010, the pressure has been rising for pharma companies. Pharmagin makes compliance with regulations a straightforward process. Every single dollar transfer of value to healthcare professionals is tracked as part of Aggregate Spend, with regular and ad-hoc reporting broken down by teams and geographies. Our cloud-based solution with mobile apps make it easy for on-the-go compliance of an otherwise daunting task.
Pricing Pressure in Pharma
In recent years, many drug companies have been accused of price gouging. Martin Shkreli, the executive of Turing Pharmaceuticals known for raising the price of his AIDS drug in 2015 from $18 a pill to $750 a pill, was highlighted in a recent CNN report as the “most hated man in America.” Nirmal Mulye, founder and president of Nostrum Pharmaceuticals, looked to Shkreli for inspiration, saying it was within his rights to increase the price of his own drug by 400%. The FDA Commissioner was quoted saying this was simply taking advantage of patients.
With these headlining news stories, the public’s perception of pharma seems to be worsening. One pharmaceutical industry reporter shared the results of a Gallup Poll showing that only 28 percent of Americans have a positive view of drug makers. “Of 25 different business sectors, only the federal government is held in lower esteem by most Americans,” the Pharmalot report stated.
Pharmagin’s technology can alleviate this pressure by ensuring that every marketing dollar spent is as effective as possible. Going beyond the fundamentals, Pharmagin’s new tools enable manufacturers to build and maintain ongoing relationships with HCPs, providing them with ongoing information and gathering feedback through surveys. Life sciences companies will better understand their customers’ needs, and ultimately deliver positive messages of improved patient outcomes.
Challenge of Identification of New Drugs
Identifying new drugs is getting harder and harder. A report from Pharmaceutical Technology in early 2019 warns that pricing concerns will be the leading roadblock for pharma growth this year.
Another report states that the cost of developing a drug has nearly doubled since 2010, citing Deloitte’s yearly assessment of the industry showing the return on investment has been impacted by the growing cost of bringing a drug to market, which now stands at $2.168 billion. “Deloitte urged pharma to act quickly to improve productivity, using new technologies and seeking out talented people with the right skills to maximise their return on investment,” stated the Pharmaphorum report.
At Pharmagin, we designed our product with these challenges in mind. Our technology solution will automate processes that will improve your program targeting in the most efficient way. It will also improve the depth and accuracy of your reporting, including feedback on key trends by therapeutic area that can help shape future product development.
Responsibility in Pricing and Marketing for Pharma Execs
All of these changes in transparency and regulations adds increasing pressure on pharmas to more efficiently commercialize their new products. Every dollar spent on marketing needs to be scrutinized, with calculations necessary to improve ROI.
There is a responsibility of pharma execs to optimize spending in all aspects of business, including sales and marketing. By facilitating better communication between pharmas, HCPs, MedComm agencies, and patients, we offer a powerful technology solution to maximize your reach and effectiveness.
We know there is a lot of pressure to listen to the right voices leading movements in the pharmaceutical industry. Our unique integrated technology ensures accurate tracking and reporting, ensuring compliance with all new regulations. No matter what changes in regulations come our way, we’ll partner with you to ensure smarter pharma marketing and a simplified process to help you focus on what really matters in your business.
Get in touch for a free demo now.