PharmExec Blog

Genentech Runs Voluntary Corrective Ads for Boniva

Even though Roche-owned Genentech wasn’t required to run costly corrective advertisements following an FDA Untitled Letter on Boniva last January, the company has done so anyway.

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Posted in Advertising, Corporate Responsibility, FDA, Legal, Marketing, Regulatory, compliance, leadership | Tagged , , , | Leave a comment

Close to Home: Is Good Health Communicable?

The 2011 Edelman Health Barometer suggests that—in the same way that we spread colds, diseases, and other illnesses from person to person—good health and healthy behaviors can also be spread. Can pharma play a pivotal role in the good-health epidemic?

Energy. An active lifestyle. Mental and emotional stability. Absence of disease. Nutrition. These are some of the words and phrases that the public used to define “health” in the 2011 Edelman Health Barometer, released in October.

“What does it mean to be healthy?” Edelman posed this open-ended question to 15,000 respondents in 12 countries and captured, verbatim, the public response. “The public is redefining ‘healthy’ as ‘How I act, what action I can take, and what actions I do take,’ rather than just ‘how I am,’” explains Nancy Mensch Turett, global chair, Health, at Edelman. And increasingly, the barometer found, this less frequently means people’s perceptions of the environment and their dealings with the healthcare system, and more often their own lifestyle and nutrition choices. “And when we asked people who influences their health—their lifestyle and nutrition—the most, second only to themselves were family and friends.”

The implications of such a statement are far-reaching. It means that regardless what standards of health or beauty we see in Hollywood, which hot new fitness personality bombards us with ads, or even how many times our doctor tells us we should really drop a few pounds, what’s really going to influence our behavior and help spread the habits that make good health communicable is each other.

“We believe there is no such thing as a non-communicable disease,” says Turett. “All diseases are communicable, whether through viruses, bacteria, behavior, or a combination of these things. A key to the future well-being of the healthcare industry, but even more importantly to society, is to understand the communicable nature of all health.” For example, the barometer found that 31 percent of respondents will spend less time with a friend because of the friend’s unhealthy behavior. Additionally, according to study results, the idea of influencing one’s peers and driving communicable good health is a bigger motivator for maintaining one’s own healthy habits than personal gain—41 percent of respondents listed “realizing that the long-term health benefit of another person would improve” as their primary trigger of action in personal health advocacy. Another 28 percent listed their primary trigger as “making a personal commitment to help others.”

Turett compares being healthy to being “green” in that, like environmental consciousness, “the sustainability of our species depends on it.” Health is “the most personal of public issues and the most public of personal issues,” she says, and so “people are very attuned to brands’ and companies’ engagement in health. And from the standpoint of the pharmaceutical industry and the healthcare industry more broadly, this means that because your business is actually a social issue—one that people feel so personally and strongly about, and is such a big public issue from an economic and societal viewpoint—people in the business of health need to attend to the social as well as the business impact of their actions.”

Much like the “green” movement, the public in fact expects government, corporations, and healthcare stakeholders to be a positive influence. And despite the bad rep we sometimes believe pharma has earned for focusing only on the bottom line, the truth is, pharma is in fact a trusted authority whose input the public values—and expects—when it comes to health issues. “In our first study we saw that the public craves engagement from the brands and companies that are involved in health,” she confirms. “The public feels that being active in health is actually an imperative for businesses across the board. People are basically saying, if you want to be relevant to me and really make a difference in my health, you need to support lifestyle and nutrition. You can’t just come to me through other channels like the healthcare system.”

This year’s health barometer confirmed those findings, showing that all businesses are expected to engage with their employees and the public as a whole on health issues, through avenues such as education communications, public policy, philanthropy, partnerships, and innovation centered on spreading and encouraging healthy behaviors.

When you consider the heavy influence of peers on health today, the digital world can no longer be overlooked. Online health communities of peers—groups of patients with the same diseases and health conditions commiserating and collaborating together—are undoubtedly part of the peer influence in today’s “health 2.0” environment. And those in this multimedia space also agree that pharma has a rightful place at the table when it comes to making good health communicable. “Patients in these online communities are not cynical of pharma for the most part. I think this almost conventional wisdom that patients are skeptical or cynical of pharma companies—I don’t see that,” says Brian Loew, CEO of Inspire, which partners with nonprofit organizations to create and host online support communities for patients and caregivers in specific therapeutic areas. “You don’t see patients looking for bad guys and conspiracy theorists. You see patients who are saying, ‘I’m really grateful that I have these treatments. I’m trying to fine-tune it, I’m trying to find out what the best treatment is,’ but they’re incredibly appreciative of the therapeutic drugs that they are taking. And they overwhelmingly don’t have animosity towards the companies. I’d love it if we could debunk some of that, because I think people feel good about pharma companies.”

Catie Coman, director of communications at the National Psoriasis Foundation (NPF)—which has partnered with Inspire for a patient online community called TalkPsoriasis—agrees. “Patients look to the pharma companies and their websites for authoritative information. So, if I want to learn everything possible about what’s on the label for a psoriasis treatment, for example, I go to the manufacturer’s website. I think they look to pharma information as valuable reference material, at least based on what we see.”

Indeed, in a new study—ePharma Consumer 2011—released by pharmaceutical and healthcare market research company Manhattan Research, 42 percent of online consumers agree that pharmaceutical companies should be involved in online health communities for consumers. The study, of 6,643 U.S. residents ages 18 and over, also found that 39 percent of online U.S. adults visit pharma prescription drug websites, and 35 percent visit pharma corporate websites. Clearly, the messages pharma chooses to send matter, and in fact consumers are looking for more, not less, input from pharma. “We asked online consumers about their use of and interest in various types of online information and tools from pharma companies. The results revealed that there is considerable unmet demand for disease management support (online tools or information to help manage a condition) and consult preparation (guide or tools to help prepare for a discussion with a doctor),” Manhattan Research told Pharm Exec.

“Pharmaceutical marketers and communicators who are looking to really create communities of health, and to support not only the healing but also the prevention of unnecessary progression of disease, really should be looking at the social unit and not just the individual,” says Turett.

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Posted in Technology, healthcare, social media | Tagged , , , | 1 Comment

JP Morgan Healthcare Conference Marked by Uncertainty

2012 J.P. Morgan Healthcare Conference Marked by Uncertainty
Audrey S. Erbes, Principal, Erbes & Associates, outlines the highlights of this week’s event in San Francisco.
One of the few positive notes struck in this week’s 30th Annual J.P. Morgan Healthcare Conference (held in San Francisco) was the announcement by Kevin Willsey, J.P. Morgan’s co-head of investment banking for North America, that the U.S. economy would grow 2.5 percent in 2012. Despite this encouraging note and media reports of a strengthening economy, however, an air of uncertainty permeated the conference halls as attendees moved from session to session.
Willsey conceded that “the elephant in the room remains Europe”, and this imagery reappeared in the opening remarks of Jamie Dimon, J.P.Morgan’s Chairman and CEO. In a Q&A with Maria Bartiromo, Anchor of CNBC’s “Closing Bell,” Dimon referred to a COPD TV commercial and feeling like the patient with an elephant sitting on his chest: concerns of uncertainty, regulation, and the European and U.S. economy weighed on his mind. His remarks were especially welcomed and provided much needed levity and a feeling of hope that we’d all live to see another day despite the sobering challenges faced by the country and industry.
The major breaking news of an otherwise uninspiring event was Bristol-Myers Squibb’s $2.5 billion purchase of Inhibitex. Apart from that, a welcome surprise among Big Pharma presenters was the newcomer from Roche Holdings AG, CFO Alan Hippe, whose unexpected energy was truly engaging, especially, when he noted there was something wrong when R&D returns had decreased to the cost of capital. Hippe apologetically warned the audience his presentation would be boring with its focus on financials. It was no surprise that “operational excellence” continues to be a key goal at Roche. Against this backdrop Hippe shared a 14% and 8% decline in 2011 sales versus 2010 for the pharmaceutical and diagnostic companies, respectively. But he softened this bad news with reminder that Roche provided an attractive dividend payment with an average yearly growth of 22% between 2004 and 2010.
Other presentations from Big Pharma and Big Biotech, however, were often lackluster — downright boring in some cases — as speakers made stock statements and provided financial data intended to comfort investors that the interest of shareholders was a top priority. Several members of the audience mentioned they could have obtained this information from company websites and noted the similarity in phrases and financial slogans heard repeatedly across presentations.
Pfizer’s Chairman and CEO, Ian Read, stated their animal health and nutrition businesses were better off outside Pfizer, and that the potential of large revenues from emerging markets to counter lost revenues from blockbuster patent expirations, so key to remarks just two years previously, was no longer a major strategic element. Abbott CFO Thomas Freyman provided lots of details, which he dutifully read, about the planned split of the company into two—pharmaceutical and medical products companies—but failed to answer the obvious question on the minds of listeners: “What was the compelling argument for this decision?” And GSK’s CFO Simon Dingemanns strongly asserted the need that finance drive decisions and become embedded in decision making at his company, a comment both unexpected and somewhat unnerving to some in the audience.
AstraZeneca’s CFO Simon Lowth provided a change of themes as he placed the importance of partnering as a primary plank of his pitch. He portrayed his company as a “focused, innovation-driven, integrated global biopharmaceutical company.” Lowth’s presentation was engaging as well as refreshing as he addressed the strategic solutions selected by AZ to meet the challenge of a changing macro and industry environment. These included early payor and regulatory involvement in drug development to secure reimbursement and market access, the implementation of new marketing and sales technologies as well as new channels of communication with customers.
NIH Director Francis Collins was perhaps the conference’s “inspirational speaker”, however. He provided some of the passion of past years’ biotech entrepreneur presentations as he shared his excitement for the profusion of new science and described objectives of new NIH Institutes and a $140 million dollar partnership between NIH and DARPA to develop a chip-based approach to drug toxicity. Unexpectedly, former FDA Commissioner Mark McClelland, in a luncheon presentation on Wednesday, also gave hope for some good coming from the Affordable Health Act. He stated strongly that “the law was very unlikely to go away.” He foresaw 2012 as a very important year for financial discussions focused much more on the “value” of health care, regulatory reforms and more effective health care.
The Chinese track offered registrants the chance to hear presentations by new Chinese companies and ask questions of top managers from key companies like Simcere, Biogene and Wuxi. There were inquiries about company business plans and hurdles management faced in China, but whether or not the founders were concerned that the government might take possession of their products and technologies as they have in other industries and whether or not the lack of the rule of law in China was a major worry to them were questions left unasked.
Perhaps the largest “elephant in the room” and a major cause of feelings of uncertainty among entrepreneurs, that, is, the lack of sufficient funding for new start ups, also went unaddressed. Yet it was the focus of many quiet conversations in the hallways. Start-up company founders and supporters shared experiences of finding the “VC wells dry,” greater difficulty in winning NIH grants and scrambling to line up alternative funding sources. Some looked to other conferences in town for answers to these important questions.

Audrey S. Erbes, Principal, Erbes & Associates, outlines the highlights of this week’s event in San Francisco.

One of the few positive notes struck in this week’s 30th Annual J.P. Morgan Healthcare Conference (held in San Francisco) was the announcement by Kevin Willsey, J.P. Morgan’s co-head of investment banking for North America, that the U.S. economy would grow 2.5 percent in 2012. Despite this encouraging note and media reports of a strengthening economy, however, an air of uncertainty permeated the conference halls as attendees moved from session to session. Read More »

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Posted in Guest Blog, R&D, Strategy, healthcare | Tagged , , , , | 2 Comments

Calculating the Cost of R&D: Defending Tufts Research

Estimates of what it takes to deliver a compound to market are more than an academic exercise — such data has an increasingly important on-the-ground impact on industry revenues,  because if you cannot justify your costs how do you expect to prevail on price?    Read More »

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Posted in Op-Ed, R&D, pricing | Tagged , , , , , | 1 Comment

Humana CEO: Keep People Out of Hospitals

Outgoing CEO Michael McCallister said one of Humana’s primary strategies going forward is to keep patients out of hospitals and other healthcare institutions, when possible.

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Posted in Strategy | Leave a comment