Pharmaceutical Marketing Lecture Notes PDF

P M Pharmaceutical Marketing By Dr.Alaa Essmat Pharmaceutical Marketing  ECU-University P M Faculty of Pharmacy Principles of Ph. Marketing and Drug Promotion Dr. Alaa Essmat...

P M Pharmaceutical Marketing By Dr.Alaa Essmat Pharmaceutical Marketing  ECU-University P M Faculty of Pharmacy Principles of Ph. Marketing and Drug Promotion Dr. Alaa Essmat Lecture (7) Pharmaceutical Marketing  P M Lecture Outline What is a Brand? Function of Branding Types of brands in pharmaceutical marketing Why does Branding come so late in pharmaceutical marketing? Why is Branding now in pharmaceutical marketing? Stages of developing the Brand name Sources of the Brand name of pharmaceutical products Pricing policy of Brand products. Strategies for Brand’s Patent Extension. Strategic Brand management process Pharmaceutical Marketing  P M What is a Brand? *Brand is a name, term, sign, symbol, or a combination of all these which differentiate the goods/services of one seller or group of sellers from those of competitors. *Brand also is the seller’s promise to consistently deliver the same bundle of benefits/ services to buyers. Pharmaceutical Marketing  P M Branding in pharmaceutical marketing Function of branding : Is to create awareness about the potential benefit(s) of the products. Is to distinguish the product or service of one provider over the other, thus allowing the consumer the freedom of choice. Is to increase the emotional connection with the target customers. Is to help products to live longer in the market with the best profit to the producing companies. Pharmaceutical Marketing  P M Product Value & Revenue Relationship Increased Increased Increased Clinical Customer Value Rx’s Share Increased Revenue Market Growth Share Pharmaceutical Marketing  P M Types of Branding in Pharmaceutical Marketing Many brands exist, and these can be classified into several types, which include: - 1- Company Branding: The company brand name adds great value to a brand, especially with a( strong and powerful company name). Pharmaceutical Marketing  P M Types of Branding in Pharmaceutical Marketing 2- Service Branding: *Pharmaceutical companies can create a particular service such as hotlines for (doctors and pharmacists)  Patient home delivery services for (certain expensive drugs)  -And several other programs such as (trade or medical promotions). Pharmaceutical Marketing  P M Types of Branding in Pharmaceutical Marketing Other consumer-targeted services :  Could include patient support programs or educational programs for (Diabetics, AIDS patients, and others)  Such programs are usually branded to promote their idea and encourage competitor’s imitation. Pharmaceutical Marketing  P M Types of Branding in Pharmaceutical Marketing 3-Person Branding: Sometimes, a pharmaceutical product could be branded in a person’s name. For example, “Gripe Water “which is used for (flatulent infants) was referred to the name of the Egyptian doctor “M. Garieb" who invented it. Pharmaceutical Marketing  P M Types of Branding in Pharmaceutical Marketing * Several other examples of “Person Branding” include "Robitussin“ cough syrup, “Johnson shampoo”, and many others ….. Branding a pharmaceutical product related to a doctor’s name has the advantage of enabling the patient to visualize the inventor and develop a sense of security and confidence in dealing with a real human being. This also, encourages other inventors to memorialize their names with new inventions Pharmaceutical Marketing  P M Types of Branding in Pharmaceutical Marketing 4- Idea Branding: “The idea is the most simple concept of branding and sometimes the most difficult to establish and maintain”. Examples: are many in the pharmaceutical field such as creative drug forms such as: *Novalgin Oblong, *Elmetacin spray (indomethacin spray) *Miacalcic nasal spray (and many others…….) Pharmaceutical Marketing  P M Branding is increased now in pharmaceutical marketing because:  (Recently, there has been a much greater emphasis and change in the importance of branding in the pharmaceutical industry, Many factors have led to this change in attitude toward branding) and they include: 1-The need for companies to return the huge initial investment in the product and in promoting awareness and interest in a new drug. Pharmaceutical Marketing  P M Branding is increased now in pharmaceutical marketing because: 2-The need for pharmaceutical companies to expand the life spans of their products when they come off patents (The average research to bring a new drug into the market is approximately $100 million and the patent life is only about 8 years). So, pharmaceutical companies have a crucial need for Branding development to extend the value of their product. Pharmaceutical Marketing  P M Branding is increased now in pharmaceutical marketing because: 3-There is also an increasing trend in the switching of some products from prescription to OTC drugs. *In the OTC market, branding becomes essential to the consumer's choice of product. Once the drug comes off the prescription, there is an important need to establish the drug in the patient's mind so that they continue to purchase it. Pharmaceutical Marketing  P M Branding is increased now in pharmaceutical marketing because: 4-There is a growing importance and concern for the consumer to be involved in the decision-making process of their treatment. - Direct-to-consumer advertising (DTCA) is taking on a very important role in pharmaceutical marketing. So, building a pharmaceutical brand name for the end consumer has become of great significance). Pharmaceutical Marketing  P M Branding is increased now in pharmaceutical marketing because: 5-There is the ever-growing competitive environment in pharmaceutical marketing, which necessitates the need for companies and products to differentiate themselves and branding is taking an ever-increasing role in the process of differentiation. Pharmaceutical Marketing  P M Stages of developing a pharmaceutical (brand name) * There are several stages in the development of a( brand name ) for pharmaceutical products and they have several names throughout their development. *The lifecycle of a pharmaceutical product is considered lengthy and the product “brand name” develops somewhat late in the cycle. Pharmaceutical Marketing  P M Stages of developing a pharmaceutical (brand name) a)Thus throughout the stage of development, products are identified by a laboratory code which is usually (an alphanumeric name) * It includes a series of initials and a series of numbers. ( This identification maintains a level of security and is non- indicative of the use or value of the product) to avoid leakage of the product development process. Pharmaceutical Marketing  P M Stages of developing a pharmaceutical (brand name) b) Then a generic name is developed for the product that mostly reflects the chemical constitution and the indication or use of the product. Pharmaceutical Marketing  P M Stages of developing a pharmaceutical (brand name) c) In each country, there exists a regulatory authority that is responsible for approving the Brand names of products to ensure that they are not misleading or too similar to other Brand names. Pharmaceutical Marketing  P M Stages of developing a pharmaceutical (brand name)  The Brand name is chosen through several sources and fits the product according to several criteria. -The choice can range according to the following sources: Pharmaceutical Marketing  P M Examples of the Brand name Sources (of pharmaceutical products) Source of the name Brand name Notes 1-According to the chemical Capoten - Active ingredient (Captopril) composition of the drug (from its scientific name or - Active ingredient (Ceftriaxone) Cefotrix APIs (Active Pharmaceutical Ingredients) - Active ingredient (Iron therapy( Ferose 2-According to the disease Migranil Treats Migraine which a drug is supposed to cure or relieve its symptoms 3-From the main benefit or Mobilat - Increase mobility action expected from the Noflu - Stops flu symptoms drug. Nospasm - Antispasmodic Pharmaceutical Marketing  P M Examples of the Brand name Sources (of pharmaceutical products) Source of the name Brand name Notes 4-From the form (Suffix or Emulgel - Emulsifiers GEL Prefix to the name) Hemacaps - Capsule form 5-From the brand benefit Retard - Sustained release positioning against Day and Night - A tablet in the morning/night competitors Vita C - Flavor (not all ingredients) Selsun blue Shampoo - Based on the color 6-From the name of the Eipilat - Eipico company Entocid - CID 7-From the name of the Gripe Water - Dr. M.Gharieb doctor who invented it. Pharmaceutical Marketing  P M Examples of the Brand name Sources (of pharmaceutical products) Source of the name Brand name Notes 1-According to the chemical composition of the drug (from its scientific name or APIs (Active Pharmaceutical Ingredients) 2-According to the disease which a drug is supposed to cure or relieve its symptoms 3-From the main benefit or action expected from the drug. Pharmaceutical Marketing  P M Examples of the Brand name Sources (of pharmaceutical products) Source of the name Brand name Notes 4-From the form (Suffix or Prefix to the name) 5-From the brand benefit positioning against competitors 6-From the name of the company 7-From the name of the doctor who invented it. 8-From the ………………… 9-From the ………………… 10-From the ………………. Pharmaceutical Marketing  P M Pricing Policy of Brand Products *The decision for pricing of Brand products depends on many criteria : Calculating the retail price of the Brand product according to:- 1- Original cost price of the product from the origin plus taxes and Profits margin (Company – Distributor – Pharmacist) Pharmaceutical Marketing  P M Pricing Policy of Brand Products 2- Price comparative study with the price of the product in: a- The country of origin. b- The available neighboring countries (Kingdom Saudi Arabia, Bahrain, Jordan, United Arab Emirates, Greece – etc ………) c- The available reference books. Pharmaceutical Marketing  P M Pricing Policy of Brand Products 3-Comparison of the brand product with the alternative brand in the same therapeutic group [ e.g. the same antibiotic group]. ( Taking into consideration the differences between them in daily doses and the overall average weekly, or monthly cost and length of treatment. * Where “price committee in Egypt” proposes that it should be the lowest price of most neighboring countries and compared to the Egyptian Community Income (to ensure the affordability of the pharmaceutical brand). Pharmaceutical Marketing  P M Brand’s Patent Extension Growth Growth Maturity Decline Pharmaceutical Marketing  P M Strategies for Brand’s Patent Extension Delayed-release preparations. Minor changes in dosing. Fixed-dose combinations. Enantiomers. Metabolites, prodrugs, analogs. Renaming. Pharmaceutical Marketing  P M Sustained-Release (SR) Modified-Release (MR) Extended-Release (XR) Controlled-Release (CR) Long-Acting (LA) Pharmaceutical Marketing  P M  “Patent extension may be obtained for minor changes in dosing”.  Example (1): Yaz (ethinyl estradiol 20 mcg / drospirenone 3 mg) Yasmin (ethinyl estradiol 30 mcg / drospirenone 3 mg) Pharmaceutical Marketing  P M Minor Changes in dosing  Example (2): Aricept (for Alzheimer’s Disease) To extend the patent life on Aricept, the manufacturer (Pfizer) developed a 23 mg version. Aricept 23 mg shows slight superiority on cognitive measures but fails to show a statistically significant improvement over the previously approved Aricept 10 mg formulation in both primary and secondary outcome measures. Aricept 23 mg demonstrated a higher incidence of adverse events such as nausea, vomiting, diarrhea, anorexia, and fatigue. Pharmaceutical Marketing  P M Fixed-dose combination:  Two or more drugs in one pill. Fixed-dose combinations: Are often more expensive than their components. Provide less flexibility in dosing options. Pharmaceutical Marketing  Fixed-Dose Combinations P M  Example: Fosamax plus D (Vitamin D), “Bispho-sphonate”, is patent-protected and costs six times as much as its generic “Alendronate”. Bisphosphonates must be taken with a calcium supplement, (However, calcium supplements are often formulated with Vitamin D). Therefore, the “plus D” component is of no real value beyond marketing the product. Pharmaceutical Marketing  P M  “Enantiomers” definition: Many drugs are a racemic mixture, containing equal parts of the left-handed and right-handed enantiomer (each of a pair of molecules that are mirror images are called enantiomers). Receptors may only accept one enantiomer effectively “one-half of the drug molecules in a racemic drug is active and the other half is inactive”. Left-handed enantiomers of the drugs, use the prefix “es” or “levo” Right-handed enantiomers of drugs, use the prefix “ar” or “dextro” Pharmaceutical Marketing  Enantiomers P M Omeprazole Esomeprazole (Patient Care, 2000) (Superior acid Control, 2005) Pharmaceutical Marketing  Enantiomers P M 1. It has become common practice to introduce a drug as a “racemic mixture”. 2. Then, when the patent is close to expiring, the company releases the active enantiomer as a “new, improved” product.  Ask yourself: Why is the “racemic mixture” marketed first when it was technically possible to market the “active enantiomer” initially? Pharmaceutical Marketing  P M  Although there are exceptions, many metabolites and prodrugs (biologically inactive compounds) that can be metabolized in the body to produce a drug, and also analogs have no advantages over the origin drug. Example: Desloratidine (Aerius / Clarinex) is the main metabolite of loratidine (Claritin). There is no evidence that desloratidine is superior. Pharmaceutical Marketing  P M  The Rename (Rebranding) Game: A new indication can extend the patent life of a drug. Some drugs are renamed upon approval for a new indication, allowing for patent extension. = = Bupropion “Zyban” was marketed as a smoking cessation aid, and is the same drug as “Wellbutrin” which is marketed as a treatment for Major Depression Disorder. Pharmaceutical Marketing  Renaming P M  The Rename Game: Other Example: = Fluoxetine is the generic version of both Prozac and Sarafem. After Prozac lost patent exclusiveness, Sarafem provided new life to the patent. Prozac was marketed as a treatment for Major Depression Disorder, while Sarefem is marketed as a treatment for Premenstrual Dysphoria Disorder. Pharmaceutical Marketing  P M Strategic Brand Management Process Steps of the” Strategic Brand Management” Process in pharmaceutical marketing * The Strategic Brand Management Process consists of the following four steps: 4 1 1-Identifying and establishing brand position Strategic 2-Planning and implementing brand Brand 2 marketing programs 3 Management 3-Measuring and Interpreting brand Process performance 4-Growing and sustaining the brand share. Pharmaceutical Marketing  P M Pharmaceutical Marketing  Questions P M  Q1: Give reason(s) for the following: a) Branding is now substantial in pharmaceutical marketing. b) Laboratory code is used in the development process of a new pharmaceutical brand.  Q2: Give an example (s) for: a) Strategies for extension of Brand’s Patent. b) Idea of Pharmaceutical product Branding. c) Pricing Policy of Brand Products. d) Service Branding. Pharmaceutical Marketing  Questions P M 3) Choose the correct answer: Pharmaceutical Marketing  P M Pharmaceutical Marketing Pharmaceutical Marketing