Transcript musa mohamed 5ht course group 8

legal
regulation of
pharmaceutical economic
activity.legal basis of
management and
marketing in pharmacy
Pharmaceutical marketing, sometimes called medicomarketing or pharma marketing in some countries, is the
business of advertising or otherwise promoting the sale
of pharmaceuticals or drugs.
 Many countries have measures in place to limit advertising
by pharmaceutical companies.
 Pharmaceutical company spending on marketing far
exceeds that spent on research.[1][2] In Canada, $1.7 billion
was spent in 2004 to market drugs to physicians; in the
United States, $21 billion was spent in 2002.[3] In 2005
money spent on pharmaceutical marketing in the US was
estimated at $29.9 billion with one estimate as high as $57
billion.[2] When the US numbers are broken down, 56%
was free samples, 25% was detailing of physicians, 12.5%
was direct to user advertising, 4% on hospital
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detailing, and 2% on journal ads.[3]There is some
evidence that marketing practices can negatively affect
both patients and the health care profession.[4]
New pharma code & guidelines[edit]
 The Pharmaceutical Research and Manufacturers of
America (PhRMA) released updates to its voluntary Code
on Interactions with Healthcare Professionals on July
10. The new guidelines take effect January 2009."[7]
 In addition to prohibiting small gifts and reminder items
such as pens, notepads, staplers, clipboards, pill boxes,
etc.,[7] the revised Code:
 Prohibits company sales representatives from providing
restaurant meals to healthcare professionals, but allows
them to provide occasional meals in healthcare
professionals’ offices in conjunction with informational
presentations"[7]
 programs. [8]
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 Includes
more detailed standards regarding
the independence of continuing medical
education.[7]
 Provides additional guidance and restrictions
for speaking and consulting arrangements
with healthcare professionals.[7]
 However, the Good Works Health
government-approved platform offers
physicians and other health care
professionals the opportunity to direct
donations to charities of their choice in
 Free
samples[edit]
 Free samples have been shown to affect physician
prescribing behaviour. Physicians with access to free
samples are more likely to prescribe brand name
medication over equivalent generic
medications.[2] Other studies found that free
samples decreased the likelihood that physicians
would follow standard of care practices.[2]
 Receiving pharmaceutical samples does not reduce
prescription costs. Even after receiving samples,
sample recipients remain disproportionately
burdened by prescription costs.[9]
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Pharmaceutical representatives[edit]
Currently, there are approximately 81,000 pharmaceutical sales
representatives in the United States[10] pursuing some 830,000
pharmaceutical prescribers. A pharmaceutical representative will
often try to see a given physician every few weeks. Representatives
often have a call list of about 200-300 physicians with 120-180
targets that should be visited in 1-2 or 3 week cycle.
Because of the large size of the pharmaceutical sales force, the
organization, management, and measurement of effectiveness of
the sales force are significant business challenges. Management
tasks are usually broken down into the areas of physician targeting,
sales force size and structure, sales force optimization, call
planning, and sales forces effectiveness. A few pharmaceutical
companies have realized that training sales representatives on high
science alone is not enough, especially when most products are
similar in quality. Thus, training sales representatives on
relationship selling techniques in addition to medical science and
product knowledge, can make a difference in sales force
effectiveness. Specialist physicians are relying more and more on
specialty sales reps for product information, because they are more
knowledgeable than primary care reps.
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Marketers attempt to identify the set of physicians most
likely to prescribe a given drug. Historically, this was done
by measuring the number of total prescriptions (TRx) and
new prescriptions (NRx) per week that each physician
writes. This information is collected by commercial
vendors. The physicians are then "deciled" into ten groups
based on their writing patterns. Higher deciles are more
aggressively targeted. Some pharmaceutical companies
use additional information such as:
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Marketers must decide on the appropriate size of a sales force needed to sell a
particular portfolio of drugs to the target market. Factors influencing this decision
are the optimal reach (how many physicians to see) and frequency (how often to see
them) for each individual physician, how many patients suffer from that disease
state, how many sales representatives to devote to office and group practice and
how many to devote to hospital accounts if needed. To aid this decision, customers
are broken down into different classes according to their prescription behavior,
patient population, and of course, their business potential.
profitability of a prescription (script),
accessibility of the physician,
tendency of the physician to use the pharmaceutical company's drugs,
effect of managed care formularies on the ability of the physician to prescribe a
drug,
the adoption sequence of the physician (that is, how readily the physician adopts
new drugs in place of older treatments), and
the tendency of the physician to use a wide palette of drugs
influence that physicians have on their colleagues
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The United States has 81,000 pharmaceutical
representatives or 1 for every 7.9
physicians.[2] The number and persistence of
pharmaceutical representatives has placed a
burden on the time of physicians.[11] "As the
number of reps went up, the amount of time an
average rep spent with doctors went down—so
far down, that tactical scaling has spawned a
strategic crisis. Physicians no longer spend much
time with sales reps, nor do they see this as a
serious problem."
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Data for drugs prescribed in a hospital are not usually available at the
physician level. Advanced analytic techniques are used to value physicians
in a hospital setting.[citation needed]
Physicians are perhaps the most important component in sales. They write
the prescriptions that determine which drugs will be used by people.
Influencing the physician is the key to pharmaceutical sales. Historically,
this was done by a large pharmaceutical sales force. A medium-sized
pharmaceutical company might have a sales force of 1000
representatives.[citation needed] The largest companies have tens of thousands
of representatives around the world. Sales representatives called upon
physicians regularly, providing clinical information, approved journal
articles, and free drug samples. This is still the approach today; however,
economic pressures on the industry are causing pharmaceutical companies
to rethink the traditional sales process to physicians. The industry has seen
a large scale adoption of Pharma CRM systems that works on laptops and
more recentlytablets. The new age pharmaceutical representative is
armed with key data at his fingertips and tools to maximize the time spent
with physicians.
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Peer influence[edit]
Key opinion leadersKey opinion leaders (KOL), or "thought
leaders", are respected individuals, such as prominent
medical school faculty, who influence physicians through
their professional status. Pharmaceutical companies
generally engage key opinion leaders early in the drug
development process to provide advocacy and key marketing
feedback.[12] Some pharmaceutical companies identify key
opinion leaders through direct inquiry of physicians (primary
research). Recently, pharmaceutical companies have begun
to use social network analysis to uncover thought leaders;
because it does not introduce respondent bias, which is
commonly found in primary research; it can identify and map
out the entire scientific community
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This program is ideal for students interested in learning the
business and management side of health care and the
pharmaceutical industry. It provides strong focus on the basic
sciences, combining biological and pharmaceutical science
coursework with marketing and general management studies.
The program prepares students for a variety of careers,
including pharmaceutical sales; health care and health
information management; food, drug and medical device
industry regulatory oversight; and pharmacy distribution
systems development and implementation. Graduates are
also prepared to continue their education in post-graduate
programs that could include business, science, or regulatory
affairs masters degrees.[2]
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This program is ideal for students interested in learning the
business and management side of health care and the
pharmaceutical industry. It provides strong focus on the basic
sciences, combining biological and pharmaceutical science
coursework with marketing and general management studies.
The program prepares students for a variety of careers,
including pharmaceutical sales; health care and health
information management; food, drug and medical device
industry regulatory oversight; and pharmacy distribution
systems development and implementation. Graduates are
also prepared to continue their education in post-graduate
programs that could include business, science, or regulatory
affairs masters degrees.[2]


This program is ideal for students interested in learning the
business and management side of health care and the
pharmaceutical industry. It provides strong focus on the basic
sciences, combining biological and pharmaceutical science
coursework with marketing and general management studies. The
program prepares students for a variety of careers, including
pharmaceutical sales; health care and health information
management; food, drug and medical device industry regulatory
oversight; and pharmacy distribution systems development and
implementation. Graduates are also prepared to continue their
education in post-graduate programs that could include business,
science, or regulatory affairs masters degrees.[2]


This program is ideal for students interested in
learning the business and management side of health
care and the pharmaceutical industry. It provides
strong focus on the basic sciences, combining
biological and pharmaceutical science coursework
with marketing and general management studies. The
program prepares students for a variety of careers,
including pharmaceutical sales; health care and
health information management; food, drug and
medical device industry regulatory science, or
regulatory affairs masters degrees.[2]
 oversight;
and pharmacy distribution systems
development and implementation. Graduates
are also prepared to continue their education
in post-graduate programs that could include
business,
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Properly planning and designing your pharmacy
starts with a blueprint and encompasses everything
from store layout and aisle placement to marketing
and advertising. Not only are you designing for the
here and now, you are also looking down the road
to anticipated trends and services, as well as to
your pharmacy’s future growth. There is no end to
this process. As technology evolves and more
modern-day conveniences emerge, competition
among pharmacies
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Customers want it all: a pharmacy
that can handle their prescriptions and overthe-counter (OTC) needs at an affordable
cost, while providing a welcoming store
environment. - See more at:
http://www.pharmacytimes.com/news/SavMor-Pharmacy-Marketing-From-the-InsideOut#sthash.YFaEAtIu.dpuf
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The Sav-Mor in Tuscola, Illinois, recently moved
into a new 6000-square-foot store that provides
increased convenience. “We moved from a
downtown setting with little parking and no
possibility of a drive-thru window,” Falk said.
“The building was 100 years old and in constant
need of costly repairs. Our new location is a
free- - See more at:
http://www.pharmacytimes.com/news/Sav-MorPharmacy-Marketing-From-the-InsideOut#sthash.YFaEAtIu.dpuf
Includes new provisions requiring companies to
ensure their representatives are sufficiently
trained about applicable laws, regulations, and
industry codes of practice and ethics.[7]
 Provides that each company will state its
intentions to abide by the Code and that
company CEOs and compliance officers will
certify each year that they have processes in
place to comply.[7]
 exchange for participation in pharmaceutical
promotional/educational
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