Survey Says Drug Marketers Expect Ad Spigot to Remain on 'Full Blast'

Dendrite just published a survey of 134 respondents in the industry, on the state of pharma marketing. You can get the full report for yourself here.

The highlights, and some discussion:

Biggest challenge: 61% said regulations. But this was in April -- since then the Senate has backed off its threat to more tightly regulate DTC so that number is probably inflated.

Fear of consumer backlash to DTC fell from 44% to 31%. The industry appears to think that consumers are getting used to the ad bombardment.

To change consumer perceptions, 25% said Patient Assistance Programs were the way to go. Not at Lilly, presumably, which just abolished changed theirs earlier this year to make their numbers look better (see comments section).

No end in sight to DTC spend increases: a plurality expected ad spend to rise 5%.

Marketing mix: Some highly misleading graphics in the report show traditional adspend declining and web programs taking their place in the marketing mix. Not included in the graphic: the relative prices of these elements. You can get a really good web site, blog and search optimization program going for less than $1 million; but you generally need to spend tens of millions on TV. So decreased spend on TVin the overall mix doesn’t necessarily mean that “less” money is actually being spent on TV, especially in light of the above prediction of a 5% increases in DTC spend …

 

Comments

[Matt R]

What a bizzare mischaracterization of Lilly's decision to end LillyAnswers. The lack of research in that statement is almost comedic (if it didn't reveal such a knee-jerk animosity to any decision ever made by any drug company). The press releases from Lilly itself about the cancellation of LillyAnswers note that it was replaced with not one, but TWO new programs: LillyCares and LillyMedicareAnswers. Which collectively not only cover all their big drugs, but also cover donut-hole gaps in medicare coverage, not a common program among drug companies. You are correct that Lilly eliminated LillyAnswers to improve its numbers. This mischaracterizes the decision, however. Lilly eliminated LillyAnswers because it double-covered a large share of elderly patients who were now covered under Medicare part D. Yes they cared about the bottom line. But as usual, there is much more to the story.

[Jim Edwards]

Matt,

Here is what Merrill Lynch wrote about Lilly dropping Lilly Answers in April 2007:

"Lilly Answers," a program to provide pharmaceuticals to low income individuals,
was shut down on December 31, 2006. Many prescriptions were transitioned to
Medicare Part D and other funding sources, which compensate Lilly at a
dramatically higher level for prescriptions. Hence, Lilly is realizing a significant
net price benefit in 2007 (vs. 2006) for a number of products (in particular Forteo).
But volume growth has been somewhat impacted since some individuals have not
filled prescriptions following the ending of Lilly Answers.
Why did Eli Lilly drop Lilly Answers?
The program was ended due to new Medicare Part D rules. But Lilly did replace it
with another program in January 2007 called "Medicare Answers," which covers
three products -- Forteo, Zyprexa, and Humatrope. Note that Medicare Answers
is a smaller operation supporting a fraction of the Lilly Answers volume.

If you look at the comments that followed my original post on this matter, you can see that some people who had contact with the program didn't find it terrifically useful.

However, I have since checked out what you wrote and LillyCares does indeed appear to cover Most if not all of Lilly's product range. I stand corrected.