Friday, May 23, 2008

Professional Advertising Doing Well. DTC? Not So Much!

Last month I attended another black-tie awards ceremony in New York City -- the Manny Awards -- hosted by MedAdNews.

Three things about this ceremony struck me:

  1. The awards were focused solely on the work of agencies producing professional (ie, physician-focused) advertising for the drug industry, and
  2. I was a stranger in a strange land!
Oh yeah! #3: Many of these agencies were doing quite well and were hiring! MedAdNews published the financials of many of these agencies and I noted that a good number of them had substantially INCREASED their headcount AND their incomes in 2007 vs. 2006

Obviously, pharma spending on physician marketing is alive and well and probably growing.

Spending on direct-to-consumer (DTC) advertising, on the other hand, is DECREASING.

The recent May issue of MedAdNews lays out the facts in its 14th Annual Report on DTC: $5.37 billion was spent on DTC in 2007 vs. $5.61 in 2006 (a 4.2% decrease; see Table below).
Media-DTC Advertising Expenditure 2007 vs. 2006 (Source: MedAdNews/Neilsen Monitor-Plus; includes promotion via Website -- not including search -- and non-branded advertising.)
AbelsonTaylor (AT), which won Mannies for the "Most Admired" as well as the "Most Feared" agency, increased its headcount from 325 in 2006 to 252 in 2007.

You may remember AT as the agency responsible for such DTC classics as Abe Lincoln meets beaver in those Rozerem ads (see "Rozerem Ads Dis Lincoln, Show Beaver"). But you may not know that AT really specializes in professional promotion and its Rozerem ad debacle (see "Rozerem Ad Spending Exceeds Sales!") was its first foray into DTC advertising. Better stick to your knitting AT. Who knows, maybe the new hires are meant to beef up its DTC division.

Cline Davis & Mann, LLC, which won the Manny for Agency of the Year, increased its headcount from650 in 2006 to 735 in 2007.

The list goes on.

Need to Learn More About Physician Marketing?
It appears that I need to learn more about the professional side of pharmaceutical marketing because that's where the smart pharma marketing money is going. And a good place for me -- and you -- to learn more about that side of the business is at this year's Pharma Marketing Networking Dinner Reception at the Princeton, NJ Marriott on Wednesday, June 4.


Approximately 50% of registered attendees have indicated that physician marketing/education is their primary focus and another 14% say it's their secondary focus.

At least 2 presenters -- Paul Boidy from ReachMD and Shaun McIver from StreamLogics -- will speak about alternative ways of reaching physicians. For more information, please see the agenda for this meeting. I hope to see you there!

Thursday, May 22, 2008

Trains, Planes, School Vans: Unsafe for Chantix Users

I have just learned that the Institute for Safe Medication Practices suggests that there may be "safety concerns (about people taking Chantix while) operating aircraft, trains, buses and other vehicles, or in other settings where a lapse in alertness or motor control could lead to massive, serious injury." (See summary of study here.)

The FAA, which reviewed the report, barred pilots and air traffic controllers from taking the drug, the WSJ reports.

If other transportation officials -- eg, Amtrak, school bus transportation supervisors, taxicab companies, etc. -- follow the FAA's lead, the Chantix "road rage" loophole I first reported on in April would be closed (see "Chantix Road Rage - Revisted"). At that time I suggested that real Chantix-induced road rage was not the problem. But using Chantix as an EXCUSE for real road rage was a problem.

It's funny how art -- or, in my case, spoof -- imitates life!

Monday, May 19, 2008

Using Google Maps to Build a Vendor Village

"Where the heck is John Mack?" you may be asking. "It's been days since he's updated Pharma Marketing Blog with his insights on pharmaceutical marketing."

Yes, lately I've been AWOL from the Pharma BlogosphereTM busy organizing the 4th Annual Pharma Networking Dinner Reception.

This event helps me fulfill my promise of maintaining a "community" of pharmaceutical marketing experts.

A side benefit is that I get to learn new things -- especially about how to integrate Web 2.0/social media tools with a real-world get together to improve the ability of attendees to network before, during, and after the event.

One example of what I am talking about is the use of "user-generated" interactive Google Maps such as the one shown here that I created for the event. This Attendee Location Map contains markers showing the locations of registered attendees to date for the Networking Dinner Reception. The markers are color-coded and can be logos like the one I use to mark the location of the event in Princeton, NJ.

When you click on a marker, an information balloon opens showing information about each attendee, including the attendee's name, job title, interests, and more. If the attendee has a public LinkedIn profile and photo, I include a link to them. I also send the attendee a request to join my network of colleagues on LinkedIn! This is a great way for attendees to get to know one another BEFORE the June 4 meeting.

What's "Web 2.0" about this map is the ability to invite attendees to collaborate on constructing the map and up-dating their information boxes, which I hope they will do.

Since the map is available to anyone visiting Pharma Marketing Network (here), it also helps attendees get noticed on the Internet. I am told it may also help in Google searches, but I think there's more work attendees need to do to optimize the map for that. But I leave that up to them!

Here's another idea:
After the meeting, I will invite all attendees to embed in the map their Vendor Elevator Pitch Videos created at the dinner!

If user-generated maps work out for attendees of this meeting, I plan to create other Google Maps to promote businesses through Pharma Marketing Network.

So far, feedback from attendees has been very good. Bill Kush, Managing Partner at Medipix Solutions, for example, had to say:

"You're doing a fantastic job on everything and are a real boon to vendors and pharma. Thanks and keep up a great service."

CHALLENGE:
Find Bill on the map and use the Google's Distance Measurement Tool to find the distance in miles -- as the crow flies -- between his location and the networking dinner site. Email me -- john mack@virsci.com -- the answer by Midnight, May 23 and get a $15 discount off the regular registration fee! See CONTEST details here (the same rules apply to locating Bill as apply to locating the attendee farthest from the event site).

Wednesday, May 14, 2008

FDA DTC Review: The House that Troy Built

At the recent DTC (direct to consumer drug advertising) hearings in Congress, senator Stupak "alleged that Johnson & Johnson kept pushing its anemia drug Procrit as a fatigue-buster, despite the FDA's admonitions," according to this report. "Testimony on the subject came with a bunch of documents, which The Cancer Letter dug through--to find that the FDA's chief counsel may have intervened on J&J's behalf to keep the ads on the air."

According to the Cancer Letter:

"Internal FDA documents show that the agency made a series of unsuccessful attempts to stop a direct-to-consumer advertising campaign that claimed that Johnson & Johnson’s erythropoiesis-stimulating agent Proctit (epoetin alfa) improved “fatigue” associated with chemotherapy-induced anemia.

The advertising campaign, which is widely credited with making ESAs into the biggest-selling class of oncology drugs, was allowed to proceed with relatively minor changes after the FDA Office of Chief Counsel became involved in the controversy."
The FDA's Chief Counsel at the time was Bush-appointed Daniel E. Troy, who came on board in August, 2001 and who resigned in November, 2004, and is now a partner in the law firm of Sidley Austin LLP. That's him in the photo at the top of this post.

The timing of Troy's coming and going is important in terms of FDA's ability to review DTC advertising in a timely and effective manner.

At the DTC hearing last week, the Government Accounting Office (GAO) submitted testimony that documented, among other things, how long it takes the FDA to issue regulatory letters citing violative DTC materials. As the chart below shows, there has been a definite trend that correlates with the appointment of Troy.

(Click for enlarged view.)

Soon after being appointed, Troy instituted a legal review of regulatory letters before they were issued and this policy change effectively hobbled the issuance of these letters by the FDA. According to the GAO testimony:
"The primary factor that contributed to the increase in the length of FDA’s process for issuing regulatory letters was the additional work that resulted from the 2002 policy change. All DDMAC regulatory letters were reviewed by both OCC (Office of Chief Counsel) staff and OCC’s Chief Counsel. In addition to the time required of OCC, DDMAC officials told us that the policy change created the need for substantially more work on their part to prepare the necessary documentation for legal review. After meeting with OCC and revising the draft regulatory letter to reflect the comments from OCC, DDMAC would formally submit a draft letter to OCC for legal review and approval. OCC often required additional revisions before it would concur that a letter was legally supportable and could be issued."
As a result of this delay in issuance of letters, violative advertisements were often disseminated for several months before the letters were issued, according to GAO testimony. And by the time the letters were issued, more than half the violative ads/materials were already discontinued. Talking about closing the barn door after the cow has left!

Not only has it taken longer to issue regulatory letters after Troy's directive took hold, the number of letters issued has dropped as well. According to the GAO testimony: From 2002 to 2005, the agency issued between 8 and 11 regulatory letters per year that cited DTC materials. Prior to the [OCC] policy change, from 1997 through 2001, FDA issued between 15 and 25 letters citing DTC materials per year.

Troy's delaying legacy continued after he resigned, except for 2005, when there was a considerable dip in the number of months it took the FDA to issue letters. I attribute this dip to the Vioxx debacle in the fall/winter of 2004, after which the FDA was under pressure to do its job more effectively. As you can see, however, the ineptness of the FDA has recovered since then with a vengeance.

Former FDA Commissioner, Lester M. Crawford -- another Bush appointee -- who resigned 2 months after assuming office (and who later pleaded guilty of conflict of interest and false reporting of information about stocks he owned), said of Troy when the latter left the agency in 2004:
"In my estimation, Dan's principal legacy is having instilled in the Agency a deep and abiding respect for the rule of law, and for the limitations imposed on FDA by the Constitution, especially the First Amendment, and by our own enabling statutes. Dan embraced the responsibility, as befits an agency's top lawyer, of helping FDA achieve our public health mission with respect for the powers Congress has -- and has not -- given us."
Well Congress has given FDA new powers -- specifically it can now levy fines against companies for violations. However, if FDA cannot even issue warning letters in a timely fashion, how can it get past the OCC to levy such fines?

It's all good on paper, but smart-ass Bush-appointed lawyers and administrators know very well how to use paper to prevent FDA from using the powers given it by Congress. And yet they complain that they lack authority to do this and do that!

IMHO, the only way the FDA will ever be fixed is by getting rid of the do-nothing administrators, starting with the current commissioner. That's my opinion and I'm sticking to it!

Tuesday, May 13, 2008

Live Podcast This Afternoon: If You Can't Measure It, You Can't Improve It

Sooner or later I'm going to need to gather all my thoughts about why it's so difficult to determine return on investment (ROI) of sales and marketing campaigns.

The problem, says Mike Wexler, Founding Principal at Biltmore Technologies -- a company that provides sales and marketing analytics -- is most acute in small to mid-tier pharmaceutical companies that cannot afford the proper tools and processes to collect, integrate, organize, and analyze their data rapidly and effectively.

Today at 2 PM Eastern time, I will be having a LIVE conversation with Mike on my Pharma Marketing Talk podcast show.

Among the questions Mike will answer are the following:

  1. What exactly are "analytics' and why are they important?
  2. What problems do small companies typically have getting actionable analytics?
Obviously, Mike will also tell us about his company's solution.

Go to the Pharma Marketing Talk Channel Page at 2 PM to listen live to the podcast on the Web with your browser. You will also be able to participate in an online chat and ask questions!

An audio archive is available after the show here.

-----------------
Biltmore Technologies is a client of mine and I hope you can spare 15 minutes to hear about their services.
-----------------

I enjoy helping companies like Biltmore Technologies find clients through new media like podcasts, which are more personal than writing articles (which I also do).

Video podcasts are my next new thing!

At the upcoming June 4 Networking Dinner Reception, for example, I will recording video interviews with as many attendees as I can. Learn more about that here. I hope to see you and get you on camera there!

4th Annual (2008)
Networking Dinner Reception
  • DATE/TIME: Wednesday, June 4, 2008 * 6:00 PM to 9:30 PM
  • LOCATION: Princeton Marriott Hotel and Conference Center at Forrestal, 100 College Road East, Princeton, NJ

Register Now!



Friday, May 09, 2008

Ruth Day and the Bees Repeat Performance at House DTC Hearing

Some of you may remember back in November, 2005, when I posted snippets from an FDA public hearing on DTC (see "FDA DTC Hearings: Snippets from Day 1"). Well, yesterday's U.S. House of Representatives Energy and Commerce hearing on DTC seems to be a replay of the FDA version.

You might say that Congress is re-enacting this investigation into DTC precisely because two and one half years after FDA held it's hearing, the agency and the drug industry have done precisely ZIP about the issues raised. In fact, since 2005, the industry and FDA have cozied up and are attempting to rubber-stamp FDA's approval of DTC ads under a payola scheme (see "PDUFA Payola!").

But enough about trivial matters. Let's focus on the testimony, and especially the testimony of Ruth Day, head of Duke University's Medical Cognition Laboratory.

I call Dr. Day the "Bee Lady" because she famously claimed at the 2005 FDA hearing that the bee in the Nasonex TV commercial beat its wings furiously when risk information was being presented but was still when benefit information was presented. Day claimed that the beating wings divert viewers’ attention from the risk information (see "DTC Pros and Cons Presented at FDA Hearing" for a more detailed analysis).

It appears that Day is sticking to her story: she retold her study results to the House Committee yesterday and claimed that the Nasonex bee flew around as side effects were listed, but simply hovered when benefits were discussed.

[NOTE: Day actually changed her study's end point since her 2005 FDA testimony. At that time she talked about the bee's beating wings, whereas yesterday she talked about bee flight. That's because Schering changed the commercial after the FDA hearing so that the wings beat equally fast when presenting BOTH benefit and risk information. It appears that drug industry scientists are not the only researchers who can use the same data but move the goalposts to prove a point!]

"All of these wing flaps and wing flashes and sparkly things essentially divided the attention of the viewers ... and thus led to decreased knowledge" of possible risks, Day said. [See "Drugmakers need to rein in ads, hearing told".]

Undoubtedly, a lot of care and attention go into the visual of a drug ad, like the blueness and clarity of the Claritin sky. In fact, recent Claritin OTC TV commercials play that visual cue to the hilt by first showing a subdued color scene that is cleared to crystal blue after the actor takes Claritin. Clearly, if Claritin were still an Rx drug, the FDA may have said this goes too far in making a benefit statement.

But how devious and clever DTC advertisers must be to employ such nefarious devices as variations in bee flight to subvert the fair balance guidelines of the FDA! Not many experts actually give marketers that much credit for manipulating the elements of ads.

Could it be that the drug industry advertisers hire "cognitive science" experts like Dr. Day to design their ads? Could be. Perhaps one day, Day will also move on over to the "dark side." Hey, it could happen!

P.S. Day never mentions why the bee speaks with a French accent. [Actually, since French fries became Freedom Fries, the bee is mute!]

P.P.S. For those of you who claim the Nasonex bee is Spanish (see comments), here's the Spanish version of my cartoon on the left.

Wednesday, May 07, 2008

'Twas the night before layoffs.....

Found on the Merck Company Board at CafePharma:

'Twas the night before layoffs and all through the house
Not a creature was stirring, not even a mouse

The reprints were stacked near the dumpster with care
Beside the ROME items, this just isn't fair

I hid my computer right under my bed
Maybe at checkout I can claim "it went dead"
My car it was free, and so was the gas
And now rising oil prices will bite me in the ass

When out on the lawn there was a loud holla
Merck security was there to take my Impala
"Have a nice day" the old man said with a laugh
I peered from the window as he cut the AMEX in half

The moon it was full, and it shined down on my home
And he twisted the knife as he grabbed my cell phone
When what to my wondering eyes should appear
A sleigh driven by Ken Frazier all loaded with beer

I rubbed my eyes and thought it a vision
Ken said "Thanks for being part of the Vaccine Division"
A sleigh full of suds, I appreciate that boss!
It's worth more than the stock options that I must sell for a loss

Failed inspections, bad press, and lawsuits galore
Have hammered the stock price right into the floor
"Optimization" is a buzz word, of which I've grown tired
Ken should play Donald Trump and tell me "You're fired!"

Oh it was a nice run, Merck once had great style
But then along came the results of the Enhance Trial
I thought a nice long career was gonna be mine
Now I'm riding my bike to the unemployment line

Maybe this change will be for the better
At least I won't have to hear about the next Unapprovable Letter
There's lots of advice these days for soon-to-be-"displaced" pharma people. Steve Woodruff over at Impactiviti Blog, for example, urges "Be Prepared - like, right now!" and offers 8 "straightforward" steps to build a wider professional network.

Let me suggest one more tip:
Attend the 4th Annual Pharma Networking Dinner Reception (click here for info) if you are in the NY/NJ/PA area.



If you are a "displaced" or soon-to-be-"displaced" pharma employee (in either sales or marketing), this would be a great place to meet people who really need your expertise.

I will offer you a $35 discount if you FAX me your termination letter from a major pharma company!

Monday, May 05, 2008

Pharma Experts to Speak at June 4 Networking Event

The agenda for the Fourth Annual Networking Dinner Reception that I am hosting at the Princeton Marriott on the evening of June 4, 2008 now includes 4 people currently working in the pharmaceutical industry or who have recently worked at a major pharmaceutical company. See the Agenda Update below.



MAY 5, 2008 IS THE LAST DAY TO SAVE $25 ON REGISTRATION!
CLICK HERE TO REGISTER

Register today using the discount code EB558 and save $25 off the standard registration fee. This "Early Bird" special ends tomorrow, so this is your last day to take advantage of it!



Agenda Update
  • Paul Boidy, President of EVP of Sales and Development at ReachMD, will be speaking about Marketing to the "Long Tail Physician" Segment. Prior to joining ReachMD, Mr. Boidy was director of neuroscience marketing for Takeda Pharmaceuticals North America.
    Paul says he's an avid and loyal reader of this blog -- despite (or maybe because of) the criticism I have expressed about certain Takeda marketing programs. Paul was introduced to me by Fard Johnmar, founder of Envision Solutions. I first met Fard at the 2006 Networking Dinner and since then we have collaborated on a number of projects. Fard's introduction to Paul has obviously benefited both Paul and myself. It's another example of how networking can help you advance your business.
  • Craig DeLarge, Associate Director, eMarketing & Relationship Marketing at Novo Nordisk Inc., has been invited to speak about the Life Science People of Color Project, the goals of which are to encourage and offer guidance to young people seeking to achieve success in the life sciences industry and to highlight the contribution of people of color in the life sciences.

  • Michael Parks, Vice President of Corporate Communications, Centocor, Inc., and Marc Monseau, Director of Corporate Communications, Johnson & Johnson, will focus on their experience as the first pharmaceutical executives to embrace Web 2.0 technology.

XML Feed To keep up with all the news about this Networking Event, subscribe to the Networking Dinner News Feed. Or visit the Networking Opportunities Forum.

Wednesday, April 30, 2008

Invasive Compliance: A Bitter Pill to Swallow

A World Health Organization (WHO) report—"Adherence to Long-Term Therapies"—estimates that between 30 and 50% of medicines prescribed for long-term illness are not taken as directed. "It is undeniable," says the WHO report, "that many patients experience difficulty in following treatment recommendations."

No doubt this lack of Compliance and Adherence represents lost income to pharmaceutical companies. Yet, the industry spends very little marketing effort to capture this income by improving compliance and adherence. There are, of course, some exceptions. See the Pharma Marketing News article "Accomplishing Adherence," which chronicles Shire's effort to boost adherence in the attention deficit hyperactivity disorder (ADHD) market. [Also see this article: "Effective Pharma Adherence Programs Start With The Patient" and this post to Pharma Marketing Blog: "Accomplishing Adherence: Highlights from a Conference."]

NOTE: Shire's drug Vyvanse--the follow-up to its ADHD drug Adderall--was just approved for use in adults. Right on the heels of that news, Shire announced that 2008 sales of Vyvanse would be at the lower end of its expectations.

As Shire's experience demonstrates, it's not easy to get a good return on investment from a compliance/adherence marketing/patient education campaign. That's why the vast majority of pharmaceutical marketers continue to focus on the "low-hanging fruit," ie, new prescriptions (new patients).

That doesn't stop academic researchers, entrepreneurs and communications experts from coming up with new ideas and gimmicks to improve compliance and adherence. The latest effort comes from researchers at the Georgia Institute of Technology (GIT) who have developed a sensor necklace (see prototype photo on left) that can record when its wearer has swallowed pills, and send reminders if necessary (see "The Necklace that Nags").

Of course, someone will have to come up with a MUCH BETTER looking necklace before I would ever wear such a device!

But that is not why I think this gadget will never make it out of academia: it relies on tiny magnets being placed within pills! As the magnetized pill slides down your gullet, the senors on the necklace detect it and identify the medication. Then it sends the info wirelessly to some database for confirmation.

As pointed out in the Newsweek article, pharmaceutical companies will have to be convinced to insert magnets into their pills. Yeah, that will happen! As I pointed out above, pharma marketers cannot even be convinced to do non-invasive compliance programs to increase their bottom lines. I just cannot see them going gaga over this necklace-magnet-in-the-pill "invasive compliance" thing.

Why not? Well, there are several reasons. Perhaps the most important is this: in an era when there is great concern about the foreign ingredients in our medications (see, for example, "Eighty Percent of Drug Safety Problems Originate Overseas"), inserting tiny magnets made in China into pills certainly is not a good idea.

Also, did I mention the ungainly necklace? Even if it were re-designed, I can't imagine me ever wearing a necklace. My sons tried earrings for a while, but not even they ever wore a necklace! Maybe if it were a religious necklace, like a Saint Christopher on a gold rope, I might wear one. But, again, too weird for pharma.

Sorry, GIT, my advice is nice try, but "git" back to the drawing board!

Monday, April 28, 2008

What's Behind AstraZeneca's New Push for FDA Preview of DTC Ads?

Reuters reports that AstraZeneca (AZ) is "urging U.S. lawmakers to revive a program for drugmakers who want to voluntarily submit their television commercials for regulatory review" (see "AstraZeneca pushes for reviews of TV drug ads").

AZ suggested that funding for this program should come pharma companies or, since there has been lawmaker opposition to this (see "FDA Won't be Previewing TV DTC Ads!"), from taxpayers like you and me.

Why is AZ so keen on this idea?

Some have suggested that it is merely a PR ploy, which had its genesis way back in November, 2005 when I first reported on AZ's proposal. Back then I noted that AstraZeneca stunned attendees at an FDA public hearing on DTC with an announcement proposing "a mandatory requirement for pharmaceutical companies to submit all direct-to-consumer (DTC) advertising to the U.S. Food and Drug Administration's (FDA) Division of Drug Marketing and Communication (DDMAC) for review prior to its use" (See "AstraZeneca's Risky Proposition").

At that time, a Pharma Marketing Roundtable member commented: "Knowing that the FDA is woefully understaffed for this type of effort, it's a 'can't lose' offer on Astra Zeneca's part! However, it'’ll play well in the popular press so my sense is that it was a smart move on their part."

But writing letters to lawmakers is not so visible to the public as to be an effective PR ploy. There must be another reason why AZ is so keen on this idea.

I think that AZ and other drug companies want the FDA to pre-approve TV ads because there are several advantages that the industry will gain, including the "loophole" that pre-approved ads can very rarely be recalled after the fact. That will drastically cut the number of warning letters the FDA issues to drug makers. Although these letters are mere slaps on the wrist and are ineffective -- ie, akin to closing the barn door after the cow has left -- they are bad publicity.

IMHO, AZ's call for FDA preview of DTC is designed more to prevent BAD publicity, than to create GOOD publicity.

Also, if the money comes from the industry rather than the public, the industry will have even more control over the FDA than it currently has (see "Pay-(FDA)-Per-(Pre)View of DTC"). On the other hand, if FDA gets taxpayer money for this, the drug industry can save some money and still reap the benefits.

BTW, don't expect FDA pre-view of TV DTC ads to actually IMPROVE these ads. Many of them will still be silly, creative fluff like the Lincoln-Beaver Rozerem ads that have won so many awards (see "Rozerem Ads Dis Lincoln, Show Beaver").



P.S. Meet up with me and 100 other interesting pharma marketing professionals on Wednesday evening, June 4th, 2008 at the Princeton Marriott for a night of great food, speakers, networking, and fun. For more information, see 4th Annual (2008) Networking Dinner Reception.

Networking to Survive the Pharma Recession
A conversation with John Mack, President, VirSci Corporation and Publisher of Pharma Marketing News.
A FREE Pharma Marketing Talk LIVE Podcast and Online Chat!

John will give an update on the agenda for the event and his plan for maximizing attendees' networking success. Q&A Session Included! Call in or particpate in the live chat during the show to ask questions. Airs LIVE on Thursday, May 1, 2008 at 1 PM Eastern US.
SPECIAL OFFER TO PHARMA MARKETING BLOG READERS: Save $30 off the regular registration fee (valid through May 8, 2008): USE THE DISCOUNT CODE 'BLG598' when registering.