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Curves Ahead -- Congressional Health Reform Impacts The U.S. Pharmaceutical Industry


Author: Alan Gillies

Recent revelations from some of the largest pharmaceutical sales companies indicate how pharmaceutical marketing is likely to change in the years ahead. Under pressure from Congress, these organisations are starting to reveal how much money is paid to healthcare professionals during the marketing phase, as they seek to interact and to sell their products. In many instances, key doctors have been engaged to act as consultants, to spread the word about particular drugs and their benefits; these levels of engagement are now being revealed.

Congressional health reform will require pharmaceutical companies to declare any payments, fees or gifts made to doctors, practitioners and hospitals, beginning in 2012. This information will be correlated and will be made public from the following year, onwards. Some organisations are choosing to pre-empt this requirement, by making information public already. Pharmaceutical sales companies defend these payments as important and indeed essential in helping to spread the word about the benefits associated with individual products. Payments are made to benefit patient care ultimately, although it is true to say that there is a certain layer of negative perception on the part of the ultimate consumer. This is where pharmaceutical sales and marketing must enhance its game, in order for a clearer and more descriptive picture to be painted.

Changes in the healthcare field dictate that executives and pharmaceutical consultants must pay more and more attention to sales and marketing and specific pharma training. Whether direct payments are part of an association or not, key account management training must ensure that both parties to the arrangement are clearly focused and understand the depth and breadth of the association. It may be necessary to reposition the relationship, in the light of changes, legislation or public opinion. If nothing else, the most recent changes emphasise the need for key account management training to be cutting-edge and to recognise the level of dynamism in the field.

Many doctors concur with the findings of pharmaceutical companies and make sure that ethical boundaries are not crossed. Doctors routinely disclose that they have a relationship with these companies and make sure that they tailor their talks, and recommendations, so that they are not seen as being partisan.

However, it is likely that direct payments will become less important and represent a smaller portion of the overall marketing mix, as new legislation rolls out and as reporting restraints are established. Some perceive any change as a challenge, while pharmaceutical companies that pay constant attention to the marketing mix, to the way that they treat their key account management, will always be ready to apply change for the good.

Pharmaceutical consultants understand how many external forces are in play, in this case due to political initiatives and from changes in public perception. They ensure that pharma training is amended as often as necessary to ensure that their staff are able to proactively engage in the market. In short, the consultants will always ensure that the organisation is adequately prepared for any eventualities that may transpire.

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