Pharma CEOs Concede That Pharma Model Is Broken
March 22nd, 2012 // 1:34 pm @ jmpickett
As if we didn’t already know this, yes? Still, a new survey finds that 68 percent of pharma execs agree that Humpty Dumpty has fallen off the wall. To be specific, 44 percent agree that the pharma industry model is broken and 24 percent strongly agree with this statement. Another 22 percent are neutral and 6 percent disagree. We wonder where this 28 percent is working right now…
And over the next two years, 76 percent believe the healthcare system pricing and budget pressures will be the biggest challenge; followed by 70 percent who believe they will have to demonstrate cost effectiveness; 69 percent who cite more restrictive market access; 60 percent who fear generic competition; 53 percent who worry about less access to docs and 50 percent who are concerned about the ability of patients to pay for their meds.
The survey canvassed 156 pharma execs who either influence or have responsibility for sales and marketing at big drugmakers in the US and Europe. On average, they have held their jobs for five years and 52 percent are directors, with 15 percent say they are vp’s and 20 percent identifying as managers. Most are responsible for a product portfolio, 46 percent, or a specific brand, 33 percent.
A few more nuggets: 43 percent believe face time with docs will decline and 26 percent think the reverse is true. Not surprisingly, spending will shift away from docs – a 32 percent decrease – while more money will be directed toward payers, hospitals and key accounts – with spending rising 47 percent, 30 percent and 47 percent, respectively.
More resources will also be devoted to: 59 percent will rely more on pricing strategies; 56 percent on payer collaborations; 55 percent on pharmacoeconomic studies; 48 percent on direct-to-consumer initiativves and 47 percent on patient adherence. In each case, less than 10 percent of the respondents predict a decrease in spending on these activities.
Interestingly, only 21 percent say they meet with payers to discuss evidence and medical needs before or during Phase II testing. And just 24 percent do so between Phase II and Phase III. Another 26 meet during Phase IIIa and Phase IIIb and the remaining 29 percent wait to do so after Phase III is complete.
Finally, lots more will be spent on social media and other forms of digital interactions. A few examples: 58 percent cite physician-oriented social media; 55 percent point to mobile technologies and 52 percent named e-detailing
