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Pharmaceutical Industry Mark Shigihara R.Ph. , CMR Account Manager UW Affiliate Faculty Pharmaceutical Industry Pharmaceutical Innovation What is a Medical Science Liaison (MSL)? 1 st Generation Medical Science Liaisons MSL Roles & Responsibilities MSL is a medical representative in the field for Wyeth. Provide fair-balanced scientific clinical information, including full scientific data on products in response to unsolicited requests A Typical MSL Question MSLs educate pharmacists on XR dosage forms MSL Profile Example USC School of Pharmacy – Doctor of Pharmacy (Pharm.D.) Post Doctoral Residency – Primary Care / Ambulatory Medicine UCLA - Santa Monica Medical Center – Director of Pharmacology Education and Research & Assistant Clinical Professor of Medicine Research - Internal Medicine & Primary Care, Journal Club P&T Committee Resident Education - Pharmacology Patient Care- Inpatient Medicine Rounds & Outpatient Clinic General MSL Characteristics Apply the science Responsive to inquiries Prepare Medical Community for new therapies Educate Support research Develop relationships-internal and external colleagues Facilitate the acceptance and understanding of Wyeth-Ayerst products and assure their optimum use Pharmaceutical Representative The Untold Story........ Sales… The world’s oldest profession The Art of Selling Pharmaceutical Sales Candidates What people used to say about Pharmaceutical Representatives.. “Oh no... not him again....I don’t have the time” “ He would have made a great used car salesman” “ I can’t remember what he said about this product but this pen is really cool” Representative role is to provide value for the customer Product education - fair balance/ethical Address contract/pricing issues Serve as a liaison to home office departments: medical affairs, product quality, product marketing, clinical studies... Meet customer needs: speakers, grants,co- promotion.... Office Based Representatives Works in private practice setting with MD s and RNs. Calls on chain and or independent pharmacies. The majority of pharmaceutical representatives are in office based roles. Medical Center Representatives Works in hospital/academic medical center environment. Audience: MD,residents, pharmacists, RN... Key responsibility- to identify and develop academic thought leaders. Representative Benefits Reward-recognition for individual achievement. The “master of your own destiny”- strategy, time allocation, priority.. Customer relationships Representative Benefits Guaranteed Salary Bonus plan - matched to performance Stock Options Car / Insurance / Gas 401 K Medical / Dental coverage Representative Challenges Customers with different points of view. Travel Relocation? Good bye to the 40 hour work week... Representative opportunities: Multiple career options- home office, sales management, training... Multiple company options: Wyeth, Ayerst, Robins, Lederle, Genetics Institute... The pharmacy degree is a tremendous asset in the pharmaceutical industry. Mark Shigihara Managed Care Area Account Manager Job responsibility Work responsibilities and impact on pharmacists. Real life questions/quiz Managed Care Environment Managed Care RAM Work with managed care health plans- Premera Blue Cross, Group Health, PacifiCare, Kaiser…. Offer product information to accounts- influence formulary /reimbursement position of products. Co promote- initiatives with customers Reimbursement Role Real Life Quiz What causes the most complaints from patients regarding their prescriptions? A) Your typing speed on labels B) You can not decode the prescriber handwriting and fill the Viagra prescription with Valium. C) The COST of pharmaceuticals COST Putting it into perspective Drugs as % of US Healthcare Costs 12.0% 11.1% 10.8% 10.0% 10.6% 9.4% 10.0% 8.9% 8.6% 8.0% 6.0% 4.0% 2.0% 0.0% 1994 1995 1996 1997 1998 1999 2000 (est.) (est.) Source: HCFA, National Center for Health Statistics Contributors to the 18.8% Increase in Rx Spending in 1999 New Medicines 3.8% Increased Utilization 10.8% Price Inflation 3.8% New Medicines Price Inflation Increased Utilization Source: IMS Health COST But what about other countries….. Pharmaceutical products cost less there…. Mc Answer Many Costs Are Lower in Canada From Higher Education... U.S. Canada Yale University McGill University (Undergraduate Tuition, Books, (Undergraduate Tuition, Books, Room and Board) Room and Board, Student Services) One Year: $32,000 One Year: $12,566 …to Fast Food McDonald’s Big Mac $2.43 $1.98 Source: Published University Data, 2000 International Price Variation McDonald’s Big Mac (U.S. Dollars, 1999) $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 . Sw K us d ly ia ry n ce o k en d en n ew ada he ny s .S n ai nd pa ar U ic n Ita al ga U an la ed a la Sp ex m tr m Ja an rla Ze er un Fr M er C itz H A D G Sw et N N Source: Economist, April 3, 1999 Approximate Hours of Work Needed to Buy 1 Specific Rx (50 mg, 30 tablets) 8 7 6 5 4 3 2 1 0 . K ly ia um d n d o en k da s g .S ai nd an n U ar ic Ita ur tr U ed a la Sp gi us ex m nl bo an rla Ire el Sw en Fi M A C m he B D xe at Lu N Source: Data on File, Pfizer, Inc and World Fact Book COSTS What about some detailed United States perspective….. Spending Patterns of Elderly U.S. Consumers Aged 65+, 1998 Drugs 2.7% Housing Transportation Food Utilities Cash Contributions Health Insurance Entertainment Clothing Medical Services & Supplies Drugs All Other Source: Bureau of Labor Statistics, 2000 Daily U.S. Consumption Expenditures Per Capita, 1997 Consumption Expenditures per day $9.00 $8.00 Tobacco $7.00 Rx Drugs Alcohol $6.00 Electricity $5.00 Auto Repair $4.00 Telephone Gas & Oil $3.00 Clothing $2.00 Food $1.00 Housing $0.00 Source: U.S.Department of Commerce, Bureau of Economic Analysis, 1998. COSTS But what about pharmaceutical companies… Are they just trying to price gouge the customer…. R&D for Pharmaceuticals and Other Industries (Percent of Sales) Research-based Pharmaceutical Companies* 20.8% Industrial Sector Comparison: Drugs and Medicine* 12.0% Office Equipment and Services 7.6% Electrical and Electronics 6.0% Telecommunications 5.1% Leisure Time Products 4.9% Automotive 4.1% Aerospace and Defense 3.7% Metals and Mining 0.9% Paper and Forest Products 0.9% All Industries, Excluding Drugs and Medicine 3.7% *“Research-based Pharmaceutical Companies” Based on Ethical Pharmaceutical Sales and Ethical Pharmaceuticals R&D Only as Tabulated by PhRMA; “Drugs and Medicine” Sector as Tabulated by Standard & Poor’s Compustat, a Division of McGraw-Hill Source: PhRMA, 1999, Based on Data From PhRMA Annual Survey and Standard & Poor’s Compustat, a Division of McGraw-Hill Compound Success Rates: 1 in 10,000 Reach FDA Approval Compound Success Discovery Rates by Stage (2–10 Years) 5,000–10,000 Preclinical Testing Screened Laboratory and Animal Testing Phase I 20–80 Healthy Volunteers Used 250 to Determine Safety and Dosage Enter Preclinical Phase II Testing 100–300 Patient Volunteers Used to Look for Efficacy and Side Effects Phase III 1,000–5,000 Patient Volunteers Used to Monitor 5 Adverse Reactions to Long-term Use Enter Clinical Testing FDA Review/Approval Additional Postmarketing Testing 1 Approved by 0 2 4 6 8 10 12 14 16 the FDA Source: PhRMA, Based on Data From the Tufts Center for the Study of Drug Development, 1995 Pharmaceutical Industry Facts Revenues from approved drugs (1 of 5 to 10,000) must cover the “dry holes” of non approved compounds. Average cost of bringing a drug to market is 500 to 800 million dollars. Average approval time is 12 to 15 years. Time to recoup investment is shrinking- generic drugs and limited patent life COST Perspective What is the cost if pharmaceutical manufacturers did not create revolutionary drugs…….. COST of Uncured Disease States COST And this does not even take into consideration… patient quality of life MSL or AAM Consider signing up for our rotation. In depth exposure to our positions. Advantages Disadvantages Answers the question – “Is the pharmaceutical industry a viable career option for me ?” Questions?